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. L11(a)Contributions-Without Donor Restrictions299,000 XNet Assets Without Donor Restrictions4,820 X102,963 X88,254 XPublic Health Education ProgramCommunity Service ProgramManagement and General58,836 XFund-Raising44,127 XM11(b)Contributions-With Donor Restrictions-Time280,460 XContributions-With Donor Restrictions-Program280,460 XN11(c)Net Assets With Donor Restrictions152,000 8Net Assets Released-Satisfaction of Purpose Restriction-With152,000 XO0 00 0 o J09Public Health Education Program88,254 XCommunity Service Program88,254 X88,254 X88,254 XManagement and GeneralFund-RaisingSalaries and Benefits Expense224,960 ORent Expense35,200Telephone Expense5,400 O12,200 O4,500 OPrinting and Postage ExpenseSupplies ExpenseDepreciation Expense3,420 OUtilities Expense8,500K10Net Assets Released-Satisfaction of Purpose Restriction-With Dd152,000 XNet Assets Released-Satisfaction of Purpose Restriction-With152,000 XO0000 0000OO

Answer:-Journal entries refer to the method of processing all the transactions done by a company in…

Answered: A business donated rent-free office…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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.

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

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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