A business donated rent-free office space to the organization that would normally rent for $35,200 a year. A fund drive raised $186,000 in cash and $102,000 in pledges that will be paid within one year. A state government grant of $152,000 was received for program operating costs related to public health education. Salaries and fringe benefits paid during the year amounted to $208,760. At year-end, an additional $16,200 of salaries and fringe benefits were accrued. A donor pledged $102,000 for construction of a new
A business donated rent-free office space to the organization that would normally rent for $35,200 a year. A fund drive raised $186,000 in cash and $102,000 in pledges that will be paid within one year. A state government grant of $152,000 was received for program operating costs related to public health education. Salaries and fringe benefits paid during the year amounted to $208,760. At year-end, an additional $16,200 of salaries and fringe benefits were accrued. A donor pledged $102,000 for construction of a new
Chapter5: Operating Activities: Purchases And Cash Payments
Section: Chapter Questions
Problem 2.1C
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- A business donated rent-free office space to the organization that would normally rent for $35,200 a year.
- A fund drive raised $186,000 in cash and $102,000 in pledges that will be paid within one year. A state government grant of $152,000 was received for program operating costs related to public health education.
- Salaries and
fringe benefits paid during the year amounted to $208,760. At year-end, an additional $16,200 of salaries and fringe benefits were accrued. - A donor pledged $102,000 for construction of a new building, payable over five fiscal years, commencing in 2022. The discounted value of the pledge is expected to be $94,460.
- Office equipment was purchased for $12,200. The useful life of the equipment is estimated to be five years. Office furniture with a fair value of $9,800 was donated by a local office supply company. The furniture has an estimated useful life of 10 years. Furniture and equipment are considered net assets without donor restrictions by INVOLVE.
- Telephone expense for the year was $5,400, printing and postage expense was $12,200 for the year, utilities for the year were $8,500 and supplies expense was $4,500 for the year. At year-end, an immaterial amount of supplies remained on hand and the balance in accounts payable was $3,800.
- Volunteers contributed $15,200 of time to help with answering the phones, mailing materials, and various other clerical activities.
- It is estimated that 90 percent of the pledges made for the 2021 year will be collected.
Depreciation expense is recorded for the full year on the assets recorded in item 5. - All expenses 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.
- Net assets were released to reflect satisfaction of state grant requirements that the grant resources be used for public health education program purposes.
- All nominal accounts were closed to the appropriate net asset accounts.
Transcribed Image Text:L
11(a)
Contributions-Without Donor Restrictions
299,000 X
Net Assets Without Donor Restrictions
4,820 X
102,963 X
88,254 X
Public Health Education Program
Community Service Program
Management and General
58,836 X
Fund-Raising
44,127 X
M
11(b)
Contributions-With Donor Restrictions-Time
280,460 X
Contributions-With Donor Restrictions-Program
280,460 X
N
11(c)
Net Assets With Donor Restrictions
152,000 8
Net Assets Released-Satisfaction of Purpose Restriction-With
152,000 X
O0 00 0 o
Transcribed Image Text:J
09
Public Health Education Program
88,254 X
Community Service Program
88,254 X
88,254 X
88,254 X
Management and General
Fund-Raising
Salaries and Benefits Expense
224,960 O
Rent Expense
35,200
Telephone Expense
5,400 O
12,200 O
4,500 O
Printing and Postage Expense
Supplies Expense
Depreciation Expense
3,420 O
Utilities Expense
8,500
K
10
Net Assets Released-Satisfaction of Purpose Restriction-With Dd
152,000 X
Net Assets Released-Satisfaction of Purpose Restriction-With
152,000 X
O0000 0000OO
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