2. The Ombudsman Foundation is a private nonprofit organization providing dispute resolution and conflict management training. The Foundation had the following preclosing trial balance at December 31, 2024, the end of its fiscal year: Account: Debits Credits Accounts payable $ 37,500 Accounts receivable (net) $ 57,000 Accrued interest receivable 15,500 Accumulated depreciation 3,162,500 Cash 109,000 Contributed services 35,000 Contributions—no restrictions 2,310,000 Contributions—purpose restrictions 780,000 Contributions—endowment 2,650,000 Current pledges receivable 75,000 Education program expenses 1,607,000 Fund-raising expenses 201,000 Investment revenue—purpose restrictions 86,000 Training seminars expenses 4,456,000 Land, buildings, and equipment 5,500,000 Long-term investments 2,690,000 Management and general expenses 365,000 Net assets without donor restrictions 448,000 Net assets with donor restrictions 2,122,000 Net gains on endowments—no restrictions 17,500 Noncurrent pledges receivable 365,000 Program service revenue—no restrictions 5,592,000 Postemployment benefits payable (long-term) 188,000 Reclassification—Satisfaction of program restrictions 188,000 Reclassification—Satisfaction of time restrictions 300,000 Reclassification—Satisfaction of program restrictions 188,000 Reclassification—Satisfaction of time restrictions 300,000 Research program expenses 1,206,000 Short-term investments 750,000 Supplies inventory 32,000 Totals $ 17,916,500 $ 17,916,500 Required: Prepare closing entries for the year-end, using separate entries for each net asset classification. Prepare a Statement of Activities for the year ended December 31, 2024.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

2. The Ombudsman Foundation is a private nonprofit organization providing dispute resolution and conflict management training. The Foundation had the following preclosing trial balance at December 31, 2024, the end of its fiscal year:

Account:	Debits	Credits
Accounts payable		$ 37,500
Accounts receivable (net)	$ 57,000
Accrued interest receivable	15,500
Accumulated depreciation		3,162,500
Cash	109,000
Contributed services		35,000
Contributions—no restrictions		2,310,000
Contributions—purpose restrictions		780,000
Contributions—endowment		2,650,000
Current pledges receivable	75,000
Education program expenses	1,607,000
Fund-raising expenses	201,000
Investment revenue—purpose restrictions		86,000
Training seminars expenses	4,456,000
Land, buildings, and equipment	5,500,000
Long-term investments	2,690,000
Management and general expenses	365,000
Net assets without donor restrictions		448,000
Net assets with donor restrictions		2,122,000
Net gains on endowments—no restrictions		17,500
Noncurrent pledges receivable	365,000
Program service revenue—no restrictions		5,592,000
Postemployment benefits payable (long-term)		188,000
Reclassification—Satisfaction of program restrictions	188,000
Reclassification—Satisfaction of time restrictions	300,000
Reclassification—Satisfaction of program restrictions		188,000
Reclassification—Satisfaction of time restrictions		300,000
Research program expenses	1,206,000
Short-term investments	750,000
Supplies inventory	32,000
Totals	$ 17,916,500	$ 17,916,500

Required:

Prepare closing entries for the year-end, using separate entries for each net asset classification.
Prepare a Statement of Activities for the year ended December 31, 2024.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions