Question
Record the transactions below for the Y, a nonprofit organization that uses accrual accounting. Record the transactions needed for the 2015 calendar year. Be sure
Record the transactions below for the Y, a nonprofit organization that uses accrual accounting. Record the transactions needed for the 2015 calendar year. Be sure to identify the balance sheet categories and accounts used in each transaction. Attach a spreadsheet to show your work.
a. On January 1, 2015, the Y acquired gym equipment costing $200,000 for cash. The equipment has an expected life of 10 years with a residual value of 20%. The Y uses straight-line depreciation.
b. On January 1, 2015, the Y sent membership-renewal notices to all of its existing members. If all of the members renewed, the Y would receive $600,000. Historically, 15% of members do not renew and will not pay the bill. The Y recognizes all membership revenue when members are billed.
c. On April 1, 2015, the Y paid $70,000 for expenses related to its annual fund-raising drive.
d. On April 1, 2015 the Y conducted its fundraising drive and received $150,000 in cash donations.
e. On July 12, 2015 the Y purchased $145,000 worth of supplies and paid its suppliers $175,000.
f. On August 20, 2015 the Y collected $350,000 that was owed to them for fiscal year 2014 membership renewals.
g. Through December 31st, the Y used $130,000 worth of supplies.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started