Question
[The following information applies to the questions displayed below.] INVOLVE was incorporated as a not-for-profit voluntary health and welfare organization on January 1, 2017. During
[The following information applies to the questions displayed below.] |
INVOLVE was incorporated as a not-for-profit voluntary health and welfare organization on January 1, 2017. During the fiscal year ended December 31, 2017, the following transactions occurred. |
1. | A business donated rent-free office space to the organization that would normally rent for $36,600 a year. |
2. | A fund drive raised $193,000 in cash and $116,000 in pledges that will be paid within one year. A state government grant of $166,000 was received for program operating cost related to public health education. |
3. | Salaries and fringe benefits paid during the year amounted to $210,160. At year-end, an additional $17,600 of salaries and fringe benefits were accrued. |
4. | A donor pledged $116,000 for construction of a new building, payable over five fiscal years, commencing in 2019. The discounted value of the pledge is expected to be $95,860. |
5. | Office equipment was purchased for $13,600. The useful life of the equipment is estimated to be 5 years. Office furniture with a fair value of $11,200 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 INVOLVE. |
6. | Telephone expense for the year was $6,800, printing and postage expense was $13,600 for the year, utilities for the year were $9,900 and supplies expense was $5,900 for the year. At year-end, an immaterial amount of supplies remained on hand and the balance in accounts payable was $5,200. |
7. | Volunteers contributed $16,600 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 2018 year will be collected. Depreciation expense is recorded for the full year on the assets recorded in item 5. |
9. | Salaries and wages 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. All other expenses were allocated in the following percentages: public health education, 35 percent; community service, 20 percent; management and general, 25 percent; and fundraising, 20 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. |
rev: 07_29_2015_QC_CS-19893
3. value:
3.12 points Required information
Required | |
a. | Prepare journal entries to record these transactions. Expense transactions should be initially recorded by object classification; in entry 10 expenses will be allocated to functions.(If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round the intermediate and final answers to the nearest dollar amount.) |
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