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KENT isas a not-for-profit organization and has incurred thetransactions shown below: SpaceY Inc.donated warehousespace to be used by KENT. The office spacewould usually be rented
KENT isas a not-for-profit organization and has incurred thetransactions shown below:
- SpaceY Inc.donated warehousespace to be used by KENT. The office spacewould usually be rented for $35,700.
- KENTraised $188,500 ofcash and $107,000 in pledges during a fund drive. The plegeswill be paid within one year. A state government grant of $157,000 was received for program operating costs related to public health education.
- Salaries and fringe benefits paid during the year amounted to $209,260. At year-end, an additional $16,700 of salaries and fringe benefits were accrued.
- A donor pledged $107,000 for construction of a new building, payable over five fiscal years, commencing in 2022. The discounted value of the pledge is expected to be $94,960.
- Office equipment was purchased for $12,700. The useful life of the equipment is estimated to be four years. Office furniture with a fair value of $10,300 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 KENT.
- Telephone expense for the year was $5,900, printing and postage expense was $12,700 for the year, utilities for the year were $9,000 and supplies expense was $5,000 for the year. At year-end, an immaterial amount of supplies remained on hand and the balance in accounts payable was $4,300.
- Volunteers contributed $15,700 of time to help with answering the phones, mailing materials, and various other clerical activities.
- 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.
- All expenses were allocated to program services and support services in the following percentages: public health education, 40 percent; community service, 20 percent; management and general, 20 percent; and fund-raising, 20 percent.
- Net assets were released to reflect satisfaction of state grant requirements that the grant resources be used for public health education program purposes.
- All nominal accounts were closed to the appropriate net asset accounts.
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