Angat Buhay Organization (ABO), a non-profit organization, received the following donations and pledges during the period January 1, 2022 to February 28, 2022: January 02, 2022: Land with a fair value of P4,000,000 to be used at the discretion of the Angat Buhay Organization. January 10, 2022: Cash of P5,000,000 restricted for the acquisition of a delivery equipment. January 15, 2022: Investment in equity securities with fair value of P1,000,000 to be held indefinitely. Only the investment income shall be used by the organization in its current operations. January 25, 2022: Members from various universities contributed services in a tree-planting activity initiated by Angat Buhay Organization. Although the volunteers rendered their services for free, the organization estimates that the fair value of these services would amount of P25,000. February 7,2022: ABO acquired a delivery equipment for P3,000,000, fund coming from the donation last January 10, 2022. February 20, 2022: Unconditional pledges from a professional organization, P300,000, no donor imposed restrictions. February 27, 2022: Conditional pledges from members of political groups, P1,500,000. How much is the balance of the net assets with donor restrictions on February 28, 2022?

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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Angat Buhay Organization (ABO), a non-profit organization, received the following donations and pledges during the period January 1, 2022 to February 28, 2022:

January 02, 2022: Land with a fair value of P4,000,000 to be used at the discretion of the Angat Buhay Organization.
January 10, 2022: Cash of P5,000,000 restricted for the acquisition of a delivery equipment.
January 15, 2022: Investment in equity securities with fair value of P1,000,000 to be held indefinitely. Only the investment income shall be used by the organization in its current operations.
January 25, 2022: Members from various universities contributed services in a tree-planting activity initiated by Angat Buhay Organization. Although the volunteers rendered their services for free, the organization estimates that the fair value of these services would amount of P25,000.
February 7,2022: ABO acquired a delivery equipment for P3,000,000, fund coming from the donation last January 10, 2022.
February 20, 2022: Unconditional pledges from a professional organization, P300,000, no donor imposed restrictions.
February 27, 2022: Conditional pledges from members of political groups, P1,500,000.

How much is the balance of the net assets with donor restrictions on February 28, 2022?

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