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XYZ Charity, a non-profit organization, has the following financial information for the year ending December 31, 2023: 1.Initial Balances and Transactions: Beginning balances: Cash $15,000,

XYZ Charity, a non-profit organization, has the following financial information for the year ending December 31, 2023:
1.Initial Balances and Transactions:
•Beginning balances: Cash $15,000, Contributions Receivable $10,000, Accounts Payable $2,000, Deferred Contributions $5,000, Net Assets (unrestricted) $18,000.
•Received contributions of $50,000, 20% restricted for a specific program.
•Earned program service revenue of $30,000.
•Received pledges of $25,000, to be received next year.
2.Expenses and Adjustments:
•Incurred program expenses of $40,000, administrative expenses of $12,000, and fundraising expenses of $5,000.
•Depreciation on building and equipment was $6,000.
•Accrued salaries payable of $3,000.
3.Additional Information:
•Collected $20,000 from contributions receivable.
•Paid $35,000 towards program expenses and $10,000 towards administrative and fundraising expenses.
Tasks:
1.Journal Entries:
•Prepare journal entries for the transactions and adjustments provided.
2.Trial Balance:
•Prepare a trial balance before and after the adjusting entries.
3.Financial Statements:
•Prepare the statement of activities and statement of financial position for the year ending December 31, 2023.
4.Statement of Cash Flows:
•Prepare the statement of cash flows using the direct method.
5.Analysis:
•Calculate the program expense ratio and fundraising efficiency ratio and discuss their significance.

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