Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. A business donated rent-free office space to the organization that would normally rent for $36,700 a year. 2. A fund drive raised $193,500

image text in transcribed

1. A business donated rent-free office space to the organization that would normally rent for $36,700 a year. 2. A fund drive raised $193,500 in cash and $117,000 in pledges that will be paid next year. A state government grant of $167,000 was received for program operating costs related to public health education. 3. Salaries and fringe benefits paid during the year amounted to $210,260. At year-end, an additional $17,700 of salaries and fringe benefits were accrued. 4. A donor pledged $117,000 for construction of a new building, payable over five fiscal years, commencing in 2025. The discounted value of the pledge is expected to be $95,960. 5. Office equipment was purchased for $13,700. The useful life of the equipment is estimated to be four years. Office furniture with a fair value of $11,300 was donated by a local office supply company. The furniture has an estimated useful life of 10 years. Furniture and equipment are considered net assets without donor restrictions by INVOLVE. 6. Telephone expense for the year was $6,900, printing and postage expense was $13,700 for the year, utilities for the year were $10,000 and supplies expense was $6,000 for the year. At year-end, an immaterial amount of supplies remained on hand and the balance in accounts payable was $5,300. 7. Volunteers contributed $16,700 of time to help with answering the phones, mailing materials, and various other clerical activities. 8. It is estimated that 80 percent of the pledges made for the 2024 year will be collected. Depreciation expense is recorded for the full year on the assets recorded in item 5. 9. All expenses were allocated to program services and support services in the following percentages: public health education, 40 percent; community service, 30 percent; management and general, 20 percent; and fund-raising, 10 percent. 10. Net assets were released to reflect satisfaction of state grant requirements that the grant resources be used for public health education program purposes. 11. All nominal accounts were closed to the appropriate net asset accounts. b. Prepare a statement of activities for the year ended December 31, 2023. (Amounts to be deducted should be indicated with a minus sign. Round the intermediate and final answers to the nearest dollar amount.) INVOLVE Statement of Activities For the Year Ended December 31, 2023 Without Donor Restrictions With Donor Restrictions Total Revenue and Other Support: Contributions Net Assets Released from Restriction Satisfaction of Purpose Total Revenue and Other Support Expenses: Total Expenses Increase in Net Assets Beginning Net Assets Ending Net Assets $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 0 $ 0 $ 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting

Authors: William K. Carter

14th edition

759338094, 978-0759338098

More Books

Students also viewed these Accounting questions