Question

Description of the Organization: The Kids Planet Club is a (fictitious), tax-exempt entity under IRC Sec. 501(c)3 whose mission is educate students in K-12 grades to think about traveling to another planet. The organization files an annual IRS Form 990 but has never prepared GAAP financial statements. You are the board member with financial expertise and have decided that you will move the organization closer to being in compliance with GAAP by at least drafting a balance sheet and operating statement for now, and next year adding the statement of cash flows and statement of functional expenses.   

Prepare the statement of financial position and statement of activities for this NFP in good form following the examples in Module 3 of the coursepack based on the adjusted trial balance provided below. Open a new tab (worksheet) for each of the statements and name them "XSFP" and "XSoA" where X is your last name; for example, "ConverySFP".

Kids Planet Club
Adjusted (pre-closing) Trial Balance
as of December 31, 2018
	Debit	Credit
Cash and cash equivalents	$      201,460
Contributions receivable, net of uncollectible accounts	32,421
Grants receivable	20,000
Inventory - supplies	25,985
Prepaid expenses	13,000
Long-term investments, at fair value	61,442
Capital assets, net of accumulated depreciation	76,010
Accounts payable		$        26,890
Capital lease obligations payable		6,500
Notes payable		17,000
Net assets without donor restrictions		131,492
Net assets with donor restrictions		94,813
Contributions - without donor restrictions		129,956
Contributions - with donor restrictions		57,875
In-kind contributions - unrestricted		54,365
In-kind donations - temporarily restricted		36,005
Government grants - unrestricted		32,154
Interest and dividend income		1,080
Realized and unrealized loss on investments	220
Net assets released from restrictions	28,697	28,697
Program service expenses*	117,035
Supporting service expenses*	40,557	-
Totals	$      616,827	$      616,827
NOTE: * Only functional, not natural (line-item) expense categories provided here.

Answer 1