Question
United Charities, a not-for-profit entity, supports activities for lower-income families. They have regularly engaged in activities such as providing transportation for physically challenged individuals, shelters
United Charities, a not-for-profit entity, supports activities for lower-income families. They have regularly engaged in activities such as providing transportation for physically challenged individuals, shelters for the temporarily homeless, group meals for the homeless,and shelters for abused women and children. Record the following transactions. Your entries should clearly indicate the fund in which the entry is made or the class of net assets to which the entry will be closed. If no entry is required, write No entry required.
f. A local attorney has agreed to provide legal services to United on a pro bono basis. During the current period the attorney provided services for which she would have billed $1,500.
g. Several older housewives provide services at the United Charities group meal facility. The women work in the kitchen serving meals and cleaning up the kitchen. If these services were not donated United would have to purchase them. The cost of the services at the prevailing wage rate for similar employees would be $50,000 for the current year.
h. Fixed assets belonging to United Charities had an original cost of $370,000, an estimated salvage value of $70,000, and an estimated useful life of 20 years. Record depreciation if applicable.
i. Cash of $90,000 is received from a donor who specifies that $30,000 is for use by United Charities and $60,000 is to be used by Zimbabwe Charities, Uniteds sister organization in Africa.
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