152.Below are the complete set of published financial statements taken from the annual report of the Jamestown Museum. The statements do not comply with generally accepted accounting principles for private not-for-profits in a number of ways. Review these statements and describe instances in which the statements fail to comply with accepted accounting standards. You must be able to justify your assertions - for example you cannot say they failed to capitalize leases if there is no evidence they have a qualifying lease.
Example: (1) The financial statements contain no note disclosures. The notes are an integral part of the financial statements and many individual disclosures are required under FASB standards.
JAMESTOWN MUSEUM
SUMMARY OF OPERATING RESULTS AND
CHANGES IN FUND NET ASSETS
YEAR ENDED JUNE 30, 2015
Operating Revenues:
Charges for Services
Unrestricted Gifts
Gifts restricted for Scholarships
Total Operating Revenues
150,000
100,000
50,000
$300,000
Operating Expenses:
Salaries
Utilities
Supplies
Depreciation
Total Operating Expenses
$100,000
50,000
80,000
40,000
270,000
Operating Income30,000
Nonoperating Income (Expenses):
Gifts for Endowments
36,000
Change in Net Assets66,000
JAMESTOWN MUSEUM
STATEMENT OF FINANCIAL POSITION
JUNE 30, 2015
Assets:
Current Assets:
Cash
Supplies
Total Current Assets
$214,000
20,000
234,000
Noncurrent Assets:
Land
Land Improvements
Less: Accumulated Depreciation
$400,000
(20,000)
100,000
380,000
Equipment
Less: Accumulated Depreciation200,000
(20,000)
180,000
Total Fixed Assets660,000
Endowment Investments
Total Noncurrent Assets300,000
960,000
Total Assets$1,194,000
Liabilities:
Current Liabilities:
Accounts Payable
Current portion of Long Term Debt
Total Current Liabilities
50,000
50,000
100,000
Long-Term Liabilities:
Bonds Payable
600,000
Total Net Assets$594,000