Assignment 10 (Chapter 12)

Questions

Lend-a-Hand is a Canadian charity based in the city of Oakville, Ontario. The mission of the organization is to provide food and shelter to inner city youth and young adults who are facing challenges of homelessness, and substance abuse issues. Lend-a-Hand accepts youth and young adults struggling with substance abuse issues into its in-house rehabilitation program in 4 major centres located in Calgary, Alberta, Moncton, New Brunswick, Quebec City, Quebec, and Oakville, Ontario.

To finance its operations, the organization depends on grants from the federal government as well as the provincial governments of Ontario, Alberta, and Quebec. In addition, the organization also solicits donations from corporate organizations and individuals.

Due to the challenges associated with the global COVID-19 pandemic, there was an increase in the number of youth and young adults needing assistance. As a result, for the 2020 fund raising campaign, Lend-a-Hand hosted a telephone fundraising campaign during the last week of October. Volunteers made phone calls to a list of prior donors who had not donated to the organization for some time. In addition, in select cities volunteers canvassed neighbourhoods door-to-door raising funds. All door-to-door donations had to be in the form of cash or cheque. Volunteers were equipped with a connected mobile device which was used for data entry to a central server.

Management has provided you with data on all the donors and the amounts they donated. The donations came in various forms – some as cash, cheques, credit card, and pledges. The data is provided as an Excel file called “Ch12_DonantionData”.

Download the Excel File Here

To assist management with planning for the future and to account for the recognition of donation revenue, management has asked you to analyze the file and answer the included questions.

For this question you, will use the PowerBI. Instructions on performing the task:

Instructions

Ensure you have downloaded the Excel file provided onto your computer. This will be your starting point.
Open PowerBI and connect to Excel. You will be asked for the filename you want to connect to. Navigate to the file that you downloaded earlier. You will see your data in the Data Source sheet. Click “Load.”
This is your opening worksheet for the visualizations you will be required to perform to enable you to answer the questions.
Click on the type of visualization you want to use.
To begin creating your visualization, create the report you want to visualize, by selecting the variables of interest – Company name, Type of Donation and Amount. This will create a Table showing the data. Next, click on the visualization of your choice on the right side of the screen. A clustered column chart yields an acceptable format. Ensure that “Company name” is in the Axis and the values are of the variable that you are interested in.
Drag the “Type of Donation” into the columns field and drag the “Amount” measure into the Row field. You are now ready to answer the questions.
If you want to exclude certain types of donations from showing up on your visualization, you can drag the “Type of Donation” into the Filter pane and click on the down arrow beside the “Type of Donation.” Uncheck the category you want to exclude.
For questions that require you to add columns, you can ignore the axes and Filter by the type of donation.

What was the total amount of donations received in the form of cash during the three-day fund-raising drive? Multiple Choice

$25,778
$40,962
$56,924
$30,607

What was the total amount of donations received in the form of cheques during the fund-raising drive?Multiple Choice

$25,778
$40,962
$56,924
$30,607

What was the total amount of donations that was raised through credit?Multiple Choice

$56,924
$25,778
$30,607
$40,962

What was the total amount of donations received through the door-to-door effort that can be recognized as revenues?Multiple Choice

$30,607
$40,962
$66,740
$87,531

How much of the donations should Lend-a-Hand recognize as revenue from the fund-raising drive?Multiple Choice

$154,271
$ 97,886
$134,987
$123,664

On which day was the most amount of donations received?Multiple Choice

29th October
30th October
28th October
29th and 30th equally

Including pledges, what was the highest total amount received on any particular day?Multiple Choice

$66,260
$97,886
$77,031
$87,531

Including pledges, from which province was the most amount of donations received?Multiple Choice

Ontario
Quebec
New Brunswick
Alberta

Including pledges, how much was received from the province of Ontario?Multiple Choice

$46,305
$33,639
$27,871
$87,531

Question 10

Fairchild Centre is an NFPO funded by government grants and private donations. It was established on January 1, Year 5, to provide counselling services and a drop-in centre for single parents.

On January 1, Year 5, the centre leased an old warehouse in the central part of Smallville for $1,600 per month. It carried out minor renovations in the warehouse to create a large open area for use as a play area for children and three offices for use by the executive director and counsellors. The lease runs from January 1, Year 5, to June 30, Year 7. By that time, the centre hopes to move into new quarters that are more suitable for the activities carried out.

The following schedule summarizes the cash flows for the year ended December 31, Year 5:


Cash inflows:
Government grant for operating costs (Note 1)	$	48,000
Donations from individuals with no restrictions		59,000
Donations from individuals for rent of warehouse for 2½ years		48,000
Donations from individuals for purchase of land (Note 3)		55,680
		210,680

Cash outflows:
Renovations of warehouse		54,000
Salary of executive director (Note 4)		26,400
Fees paid to counsellors (Note 4)		21,500
Rent paid for 2½ years		48,000
Other operating expenses		21,000
		170,900
Cash, end of year	$	39,780

Additional Information

The provincial government agreed to provide an operating grant of $48,000 per year. In addition, the government has pledged to match contributions collected by the centre for the purchase of land for construction of a new complex for the centre. The maximum contribution by the government toward the purchase of land is $96,000.
The centre has signed an agreement to purchase a property in the downtown area of Smallville for $216,000. There is an old house on the property, which is currently used as a rooming house. The closing date is any time between July 1, Year 6, and December 31, Year 6. The centre plans to demolish the existing house and build a new complex.
The centre has recently commenced a fundraising program to raise funds to purchase the land and construct a new building. So far, $55,680 has been raised from individuals toward the purchase of the land. In the new year, the centre will focus its efforts to solicit donations from businesses in the area. The provincial government will advance the funds promised under its pledge on the closing date for the purchase of the property.
All the people working for the centre are volunteers except for the executive director and the counsellors. The executive director receives a salary of $28,800 a year, while the counsellors bill the centre for professional services rendered based on the number of hours they work at the centre. The director has not yet received her salary for the month of December. One of the counsellors received an advance of $1,150 in December, Year 5, for work to be performed in January, Year 6.
The centre wishes to use the deferral method of accounting for contributions and to segregate its net assets between restricted and unrestricted. It capitalizes the cost of capital assets and amortizes the capital assets over their useful lives.

Required:

(a) Prepare the journal entry to record the pledge, if applicable. (Omit $ sign in your response.)

(b) Prepare a statement of operations for the Fairchild Centre for the year ended December 31, Year 5. (Input all amounts as positive values. Omit $ sign in your response.)

(c) Prepare a statement of changes in net assets for the Fairchild Centre for the year ended December 31, Year 5. (Leave no cell blank, be sure to enter “0” wherever required. Omit $ sign in your response.)

Question 11

The Perch Falls Minor Hockey Association was established in Perch Falls in January, Year 5. Its mandate is to promote recreational hockey in the small community of Perch Falls. With the support of the provincial government, local business people, and many individuals, the association raised sufficient funds to build an indoor hockey arena, and it also established an endowment fund for paying travel costs to tournaments on an annual basis.

The following schedule summarizes the cash flows for the year ended December 31, Year 5.

PERCH FALLS MINOR HOCKEY ASSOCIATION
($000s)
	Operating fund	Capital fund	Endowment fund
Cash inflows:
Government grant for operating costs	45
Government grant for hockey arena		400
Corporate donations for hockey arena		200
Registration fees	20
Contribution for tournaments			35
Rental of hockey arena	40
Interest received			2.1
	105	600	37.1
Cash outflows:
Operating expenses	102
Construction of hockey arena		600
Purchase of corporate bonds			35
Travel costs for tournament			2.1
	102	600	37.1
Cash, end of year	3	0	0

Additional Information

The new hockey arena was completed in late August, Year 5. The official opening was held on August 30, with a game between the Perch Falls Old-Timers and the local firefighters. The arena is expected to have a 40-year useful life and no residual value.
A long-time resident of Perch Falls donated the land on which the arena was built. The land was valued at $70,000. The association gave a donation receipt to the donor.
A former resident of Perch Falls donated ice-making and ice-cleaning equipment to the association on April 1, Year 5. A receipt for $60,000 was issued for the donation. The equipment has a useful life of 10 years and no residual value.
The donation for tournaments was contributed on January 1, Year 5, with the condition that the principal amount of $35,000 be invested in 6% corporate bonds. The interest earned on the investment can be used only for travel costs for out-of-town tournaments. All investments in bonds will be held to their maturity date.
The provincial government pledged $50,000 a year for operating costs. Ninety percent of the grant is advanced throughout the year. Upon receipt of the association’s annual report, the government will issue the last 10% of the annual grant to the association.
Registration fees and rental fees for the hockey arena are received at the beginning of the hockey season and cover the entire season, from September 1, Year 5, to April 30, Year 6.
At the end of the year, the association owed $3,000 for services received in the month of December.
The association wants to use the restricted fund method of accounting for contributions and to use three separate funds: operating fund, capital fund, and endowment fund. All capital assets are to be capitalized and amortized, as applicable, over their estimated useful lives.

Required:

(a) Prepare a statement of financial position and statement of operations for each of the three funds as at and for the year ended December 31, Year 5. (Negative amounts should be indicated by minus sign. Enter your answer in thousands. Round “Endowment Fund” answers in “Statement of Operations” to 1 decimal place. Leave no cells blank – ensure that “0” is entered wherever required. Omit $ sign in your response.)

(b) (i) Assume that 500 children registered with the Association in Year 5. What was the average cost per registered child for Year 5 for running the Association? (Enter your answer in dollars rounded to 1 decimal place. Round your answer to 1 decimal place. Omit $ sign in your response.)

Related Assignment: (Solution) MOS4465 Assignment 1 Chapter 1 & 2