Subject : Accounting Required information[The following information applies to the questions displayed below.]INVOLVE was incorporated as a not-for-profit organization on January 1, 2023. During the fiscal year ended December 31,2023, the following transactions occurred.1. A business donated rent-free office space to the organization that would normally rent for $37,000 a year.2. A fund drive raised $195,000 in cash and $120,000 in pledges that will be paid next year. A state government grant of$170,000 was received for program operating costs related to public health education.3. Salaries and fringe benefits paid during the year amounted to $210,560. At year-end, an additional $18,000 of salariesand fringe benefits were accrued.4. A donor pledged $120,000 for construction of a new building, payable over five fiscal years, commencing in 2025. Thediscounted value of the pledge is expected to be $96,260.5. Office equipment was purchased for $14,000. The useful life of the equipment is estimated to be five years. Officefurniture with a fair value of $11,600 was donated by a local office supply company. The furniture has an estimateduseful life of 10 years. Furniture and equipment are considered net assets without donor restrictions by INVOLVE.6. Telephone expense for the year was $7,200, printing and postage expense was $14,000 for the year, utilities for theyear were $10,300 and supplies expense was $6,300 for the year. At year-end, an immaterial amount of suppliesremained on hand and the balance in accounts payable was $5,600.7. Volunteers contributed $17,000 of time to help with answering the phones, mailing materials, and various other clericalactivities.. It is estimated that 90 percent of the pledges made for the 2024 year will be collected. Depreciation expense isrecorded for the full year on the assets recorded in item 5.9. All expenses were allocated to program services and support services in the following percentages: public healtheducation, 35 percent; community service, 30 percent; management and general, 20 percent; and fund-raising, 15percent.10. Net assets were released to reflect satisfaction of state grant requirements that the grant resources be used for publichealth education program purposes.11. All nominal accounts were closed to the appropriate net asset accounts.b. Prepare a statement of activities for the year ended December 31, 2023. (Amounts to be deducted should be indicated with aminus sign. Round the intermediate and final answers to the nearest dollar amount.)

Statement of activities is prepared by the Non for profit entities to determines their revenues and…

lowing information applies to the questions displayed below.] E was incorporated as a not-for-profit organization on January 1, 2023. During the fiscal year ended December 31, he following transactions occurred. siness donated rent-free office space to the organization that would normally rent for $37,000 a year. d drive raised $195,000 in cash and $120,000 in pledges that will be paid next year. A state government grant of 000 was received for program operating costs related to public health education.

lowing information applies to the questions displayed below.] E was incorporated as a not-for-profit organization on January 1, 2023. During the fiscal year ended December 31, he following transactions occurred. siness donated rent-free office space to the organization that would normally rent for $37,000 a year. d drive raised $195,000 in cash and $120,000 in pledges that will be paid next year. A state government grant of 000 was received for program operating costs related to public health education.

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter28: Income Taxation Of Trusts And Estates

Section: Chapter Questions

Problem 9DQ

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INVOLVE was incorporated as a not-for-profit organization on January 1, 2023. During the fiscal year ended December 31, 2023, the following transactions occurred. A business donated rent-free office space to the organization that would normally rent for $35,300 a year. A fund drive raised $186,500 in cash and $103,000 in pledges that will be paid next year. A state government grant of $153,000 was received for program operating costs related to public health education. Salaries and fringe benefits paid during the year amounted to $208,860. At year-end, an additional $16,300 of salaries and fringe benefits were accrued. A donor pledged $103,000 for construction of a new building, payable over five fiscal years, commencing in 2025. The discounted value of the pledge is expected to be $94,560. Office equipment was purchased for $12,300. The useful life of the equipment is estimated to be five years. Office furniture with a fair value of $9,900 was donated by a local office supply…
INVOLVE was incorporated as a not-for-profit organization on January 1, 2023. During the fiscal year ended December 31, 2023, the following transactions occurred. A business donated rent-free office space to the organization that would normally rent for $35,000 a year. A fund drive raised $185,000 in cash and $100,000 in pledges that will be paid next year. A state government grant of $150,000 was received for program operating costs related to public health education. Salaries and fringe benefits paid during the year amounted to $208,560. At year-end, an additional $16,000 of salaries and fringe benefits were accrued. A donor pledged $100,000 for construction of a new building, payable over five fiscal years, commencing in 2025. The discounted value of the pledge is expected to be $94,260. Office equipment was purchased for $12,000. The useful life of the equipment is estimated to be five years. Office furniture with a fair value of $9,600 was donated by a local office supply…
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