You have recently been named the chief accountant for Stop Smog Now

$($SSN$),$ a not$-$for$-$profit organization $($NFPO$)$ that provides pollution control

devices for electricity$-$generating plants in developing coy

Time left $2$:$56$:$49$

The following donations were received during Year $5.(10$ marks$)$

a$.$ A local radio station donated airtime valued at $$20,000.$ If the

airtime had not been donated, SSN would have purchased it and

used it for advertising a fundraising event and silent auction.

b$.$ A person donated land with a fair value of $$50,000.$

c$.$ During a recent fund$-$raising campaign, volunteers spent roughly

$1000$ hours soliciting donations from the public. The minimum

hourly wage rate in SSN$\text{'}$s area of operation is $$12\mathrm{.}00$ per hour.

d$.$ A capital asset $($equipment$)$ with a fair value of $$1,500,000$ is

donated on January $1,$ Year $5.$ The equipment has a $10-$year useful

life and no residual value. The organization will use the equipment

in its operations. The NFPO has a December $31$ year end.

Prepare all necessary journal entries to record these transactions,

including any required year$-$end adjusting entries. SSN uses the deferral

method of accounting for contributions. If a journal entry is not needed,

state your reason. $(4$ marks$)$

e$.$ The SSN board is a bit confused on the question of whether they

are a small or large NFPO. Advise them of the rule to determine

Prepare all necessary journal entries to record these transactions.

including any required year$-$end adjusting entries. SSN us

method of accounting for contributions. If a journal entry

Time left $2$:$56$:$47$

state your reason. $(4$ marks$)$

e$.$ The SSN board is a bit confused on the question of whether they

are a small or large NFPO. Advise them of the rule to determine

this, and also provide them the options regarding accounting for

capital assets if they remain a small NFPO.