Question
1.NPO, Inc, a private not-for-profit organization, was established on January 2, 2020 to provide training programs for those teenagers about to enter the workforce.The following
1.NPO, Inc, a private not-for-profit organization, was established on January 2, 2020 to provide training programs for those teenagers about to enter the workforce.The following events occur in 2020:
a.$1,000,000 was received in government funding, in the form of grants.Of this total, $600,000 was designated by the government for constructing a building, $200,000 was designated to be used to set up computer training programs, and the rest was unrestricted.
b.NPO received $200,000 in cash contributions and $130,000 in documented pledges to be received in 2021.All contributions are undesignated, and 10% of pledges are estimated to be uncollectible.
c.Expenses for the year were as follows:
General Services
Training Programs
Fund-raising
Salaries
$40,000
$ 50,000
$20,000
Supplies
30,000
75,000
10,000
Utilities
30,000
25,000
5,000
Travel
--
--
15,000
Total
$100,000
$150,000
$50,000
All of the above expenses were paid in cash, except for $25,000 still owed to suppliers.
Of the $150,000 in expenses for training programs, $78,000 was financed by the government grant described in Item 1 above.
Expenses are displayed functionally in the statement of activities.
d.Services were donated as follows (fair values of services provided are shown in parenthesis):
Audit by local CPA ($5,000)
High school students distributed fliers to the public ($2,000)
Contractor drafted plans for the building ($15,000)
Can you help/explain how to do the 2020 statement of activities for NPO, Inc. , please? thank you
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