Part-1
You have been hired as an executive director of a small nonprofit organization. Among your many duties are to determine an annual budget and develop a fiscal plan for the organization.
For this assignment, you must develop a 2-page spreadsheet that you will deliver to the director and staff containing an annual generic annual budget for the RTWMTC. Using an income of 800,000 per year, you must answer the following questions:
• How many employees does the RTWMTC company have and what is the break down of their salaries (you may choose)
• What additional costs does RTWMTC have (include utilities, lease/mortgage, phone, etc.)?
• What is the surplus or deficit of the RTWMTC?
•Why it is important for an organization, project or department to have a budget.
Part-2
There is a high school accounting intern working in your office for the summer. In the lunchroom, she overhears people talking about financial reporting and GAAP. She doesn't really know what they are, so she asks you to explain them to her.
• Explain what accountants are generally referring to when they talk about "financial reporting."
• Explain the generally accepted accounting principles (GAAP).
• Explain the sources of GAAP.
Understand capital markets and decision making, explain what is included in financial reporting, and discuss generally accepted accounting principles (GAAP) and the sources of GAAP.
Part-3
The following cash transactions took place during March, the first month of business for Cats and Dogs Company:
1. D.C. Dawg started a business, Cats and Dogs Company, by contributing $6,000.
2. The Cats and Dogs Company borrowed $2,000 from the bank on March 1. The note is a 1-year, 12% note, with both principal and interest to be repaid on February 28 of next year.
3. The company earned $900 in revenue.
4. Expenses amounted to $650.
5. Distributions to owners amounted to $25.
You are to complete the following tasks:
1. Show how each cash transaction affects the accounting equation.
2. Give one additional piece of information related to the transaction that could be recorded in an information system for a purpose other than the financial statements.
3. Prepare the four basic financial statements for the month of March.