SPARK was incorporated as a no n profit voluntary health and welfare organization on January 1, 201 5 . During the fiscal year ended December 31, 201 5 , the following transactions occurred : 1. A business donated rent - free office space to the organization that would normally rent for $1 6 ,000 a year. 2. A fund drive raised $1 20 ,000 in cash. A state government grant of $50,000 was received for program operating costs. 3. An administrator was hired to administer the program services and support services of the organ ization. The administrator was paid $ 92 ,000 for the year, which include d fringe benefits. Part - time clerical help was paid $2 6 ,000 for the year. At year - end, $ 18 ,000 of the salaries and wages remained unpaid. 4. Pledges of $100,000 were received for construct ion of a new building. The pledges are payable over the following five fiscal years. The discounted value of the $80,000 in pledges expected to be received in years 2016 2019 is $73,400. 5. Office equipment was purchased for $5,000. The useful life of the equ ipment is estimated to be five years. Office furniture with a fair value of $7,600 was donated by a local office supply company. The furniture has an estimated useful life of 10 years. Furniture and equipment are considered unrestricted net assets by SOLVE . 6. Telephone expense for the year was $5, 6 00, printing and postage expense was $1 0 ,000 for the year, and supplies expense was $2,100 for the year. At year - end, an immaterial amount of supplies remained on hand and the balance in accounts payable was $3, 8 00. 7. Volunteers contributed $15,000 of time to help with answering the phones, mailing materials, and various other clerical activities. 8. It is estimated that all of the pledges made for the 2015 year will be collected. Depreciation expense is recorded for the full year on the assets recorded in item 5. 9. E xpenses were allocated in the following percentages: public health education, 3 5 % ; community service, 2 5 % ; management and general, 20 % ; and fundraising, 20 % . 10. Net assets were released to reflect satisfaction of state grant requirements that the grant resources be used for program purposes. 11. All nominal accounts were closed to the appropriate net asset accounts. Required A. Make all necessary journal entries to record these transactions. Expense transactions should be initially recorded by object classification; in entry 10 , expenses will be allocated to functions. B. Prepare a statement of activities for the year ended December 31, 2014. C. Prepare a statement of financial position for the year ended December 31, 2014. D. P repare a statement of cash flows for the year ended December 31, 2014. E. Prepare a statement of functional expenses for the year ended December 31, 2014.

Rent	$ 16,000.00
Cash		$ 16,000.00
Cash	$ 170,000.00
Fund		$ 120,000.00
Government Grant		$ 50,000.00
Admin Expense	$ 92,000.00
Part-time Clerical Expense	$ 26,000.00
Cash		$ 118,000.00
Salaries & Wages	$ 18,000.00
Salaries & Wages Payable		$ 18,000.00
Accounts Receivable	$ 293,600.00
Revenue ($73,400*4)		$ 293,600.00
Office Equipment	$ 5,000.00
Cash		$ 5,000.00
Office Furniture	$ 7,600.00
Donations		$ 7,600.00
Telephone Expenses	$ 5,600.00
Printing & Postage Expenses	$ 10,000.00
Supplies Expense	$ 2,100.00
Accounts Payable		$ 3,800.00
Cash		$ 13,900.00
Misc Expenses	$ 15,000.00
Cash		$ 15,000.00
Depreciation on Office Equipment	$ 1,000.00
Accumulated Depreciation-Office Equipment		$ 1,000.00
Depreciation on Office Furniture	$ 760.00
Accumulated Depreciation-Office Furniture		$ 760.00
Totals	$ 662,660.00	$ 662,600.00
Public Health Expense	$ 54,411.00
Community Service Expense	$ 38,865.00
Management & General Expense	$ 31,092.00
Fundraising Expense	$ 31,092.00
Admin Expense		$ 92,000.00
Depreciation of Office Equipment		$ 1,000.00
Depreciation of Office Furniture		$ 760.00
Supplies Expense		$ 2,100.00
Printing & Postage Expense		$ 10,000.00
Telephone Expenses		$ 5,600.00
Salaries & Wages		$ 18,000.00
Part-time Clerical Expense		$ 2,600.00