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KENT is as a not-for-profit organization and has incurred the transactions shown below: 1. Spacey Inc. donated warehouse space to be used by KENT. The
KENT is as a not-for-profit organization and has incurred the transactions shown below: 1. Spacey Inc. donated warehouse space to be used by KENT. The office space would usually be rented for $35,400. 2. KENT raised $187,000 of cash and $104,000 in pledges during a fund drive. The pleges will be paid within one year. A state government grant of $154,000 was received for program operating costs related to public health education. 3. Salaries and fringe benefits paid during the year amounted to $208,960. At year-end, an additional $16,400 of salaries and fringe benefits were accrued. 4. A donor pledged $104,000 for construction of a new building, payable over five fiscal years, commencing in 2022. The discounted value of the pledge is expected to be $94,660. 5. Office equipment was purchased for $12,400. The useful life of the equipment is estimated to be five years. Office furniture with a fair value of $10,000 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 KENT. 6. Telephone expense for the year was $5,600, printing and postage expense was $12,400 for the year, utilities for the year were $8,700 and supplies expense was $4,700 for the year. At year-end, an immaterial amount of supplies remained on hand and the balance in accounts payable was $4,000. 7. Volunteers contributed $15,400 of time to help with answering the phones, mailing materials, and various other clerical activities. 8. It is estimated that 90 percent of the pledges made for the 2021 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, 35 percent; community service, 30 percent; management and general, 20 percent; and fund-raising, 15 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. No Debit Credit Transaction 01 . General Journal Rent Expense Contributions-Without Donor Restrictions 35,400 35,400 B 02 341,000 104,000 Cash Contributions Receivable ContributionsWithout Donor Restrictions ContributionsWith Donor RestrictionsProgram 187,000 258,000 03 225,360 Salaries and Benefits Expense Salaries and Benefits Payable Cash OOO 16,400 208,960 D 04 104,000 Contributions Receivable Discount on Contributions Receivable ContributionsWith Donor RestrictionsTime 9,340 94,660 E 05 22,400 Equipment and Furniture Contributions Without Donor Restrictions Cash >> 10,000 12,400 F 06 Telephone Expense Printing and Postage Expense Utilities Expense Supplies Expense Accounts Payable Cash 5,600 12,400 8,700 4,700 OOO 4,000 27,400 G 07 No Journal Entry Required H 8(a) 10,400 Provision for Uncollectible Pledges Allowance for Uncollectible PledgesUnrestricted 10,400 8(b) 3,480 Depreciation Expense Allowance for Depreciation Equipment and Furniture 3,480 J 09 107,114 91,812 61,208 45,906 Public Health Education Program Community Service Program Management and General Fund-Raising Salaries and Benefits Expense Rent Expense Telephone Expense Printing and Postage Expense Utilities Expense Supplies Expense Provision for Uncollectible Pledges Depreciation Expense 225,360 35,400 5,600 12,400 8,700 4.700 10,400 3,480 K 10 Net Assets Released-Satisfaction of Purpose RestrictionWith Do 107,114 Net Assets Released-Satisfaction of Purpose RestrictionWith 107,114 11(a) 232,400 73,640 Contributions Without Donor Restrictions Net Assets Without Donor Restrictions Public Health Education Program Community Service Program Management and General Fund-Raising 107,114 91,812 61,208 45,906 M 11(b) ContributionsWith Donor RestrictionsProgram ContributionsWith Donor RestrictionsTime Net Assets With Donor Restrictions 258,000 94,660 352,660 N 11(c) Net Assets With Donor Restrictions 107,114 Net Assets Released-Satisfaction of Purpose RestrictionWith 107,114 O 11(d) 107, 114 Net Assets ReleasedSatisfaction of Purpose RestrictionWithout Net Assets Without Donor Restrictions 107,114 d. Prepare a statement of cash flows for the year ended December 31, 2020. (List of cash outflows should be indicated by a minus sign. Round the intermediate and final answers to the nearest dollar amount) INVOLVE Statement of Cash Flows For the Year Ended December 31, 2020 Cash Flows from Operating Activities: Cash Received from Contributions Cash Paid to Employees Cash Paid to Suppliers $ 341,000 208,960 X 31,400 581.360 Net Cash Provided by Operating Activities Cash Flows from Investing Activities: Purchase of Equipment Net Increase in Cash Beginning Cash Ending Cash o 12,400 593,760 0 $ 593,760 Reconciliation of Changes in Net Assets to Net Cash Provided by Operating Activities Change in Net Assets X Adjustments to Reconcile Changes in Net Assets to Net Cash Provided by Operating Activities: Increase in Net Contributions Receivable 198,660 X Increase in Accounts Payable 4,000 Increase in Salaries Payable 16,400 Gift of Furniture (10,000) X 209,060 Cash Provided by Operating Activities *Red text indicates no response was expected in a cell or a formula-based calculation is incorrect; no points deducted
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