Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Prepare a schedule of expenses INVOLVE was incorporated as a not-for-profit organization on January 1,2023. During the fiscal year ended December 31 , 2023, the

Prepare a schedule of expenses
image text in transcribed
INVOLVE was incorporated as a not-for-profit organization on January 1,2023. During the fiscal year ended December 31 , 2023, the following transactions occurred. 1. A business donated rentefree 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 recelved for program operating costs related to public health education. 3. Salaties and fringe benefits paid during the year amounted to $210,260. At year-end, an additional $17700 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 five years. Office fumiture 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 iterm 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 sotisfaction of state grant requirements that the grant resources be used far public health education program purposes. 11. Al nominal accounts were closed to the appropilate net asset accounts. e Piepare a schedule of expenses by nature and function for the year ended December 31, 2023

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

Step: 3

blur-text-image

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

Modern Management Control Systems Text And Cases

Authors: Kenneth A. Merchant

1st Edition

0135541557, 978-0135541555

More Books

Students also viewed these Accounting questions

Question

How competitive is the external environment of your organization?

Answered: 1 week ago

Question

What other organizations compete on this issue?

Answered: 1 week ago

Question

What significant opposition exists?

Answered: 1 week ago