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Can you assist me in solving this problem. I'm having trouble making the switch between financial accounting and nonprofit accounting. Save the Turtles is a
Can you assist me in solving this problem. I'm having trouble making the switch between financial accounting and nonprofit accounting.
Save the Turtles is a non-for-profit organization that was incorporated in 20X0 and has a December 31 year end. Save the Turtles had the following transactions during 20X0.
- Volunteers donated $20,000 in time to help with answering the phones, mailing materials, and other clerical activities.
- A business donated rent-free office space to the organization that would normally rent for $35,000 per year.
- Office furniture worth $10,600 and with an estimated 10-year life was donated to the organization.
- A fund drive raised $215,000 in cash and $100,000 in pledges that will be paid within one year. A state government grant of $50,000 was received for program operating costs.
- Save the Turtles paid salaries and fringe benefits of $208,560 during the year and had $22,400 of accrued salaries and benefits at the end of the year.
- Utilities expense for the year totaled $8,300 and other expenses for the year included $5,600 for telephone, $4,300 for supplies, and $14,200 for printing. There were no supplies remaining at the end of the year and accounts payable totaled $4,400.
- Office equipment with a useful life of 5 years was purchased for $12,000.
- The organization claims a full year of depreciation on fixed assets.
- Ninety percent of pledges for 20X1 are estimated to be collectible.
- Expenses were allocated to program services and support services in the following percentages: Public education45%, Veterinary services20%, Management and general20%, Fundraising15%.
Required:
- Make all necessary journal entries to record these transactions.
- Prepare a schedule of expenses by nature and function for the year ended December 31, 20X0.
- Show calculations for all questions.
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