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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 salaries
and fringe benefits were accrued.
4. A donor pledged $120,000 for construction of a new building, payable over five fiscal years, commencing in 2025. The
discounted value of the pledge is expected to be $96,260.
5. Office equipment was purchased for $14,000. The useful life of the equipment is estimated to be five years. Office
furniture with a fair value of $11,600 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.
6. Telephone expense for the year was $7,200, printing and postage expense was $14,000 for the year, utilities for the
year were $10,300 and supplies expense was $6,300 for the year. At year-end, an immaterial amount of supplies
remained 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 clerical
activities.
. It is estimated that 90 percent of the pledges made for the 2024 year will be collected. Depreciation expense is
recorded 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 health
education, 35 percent; community service, 30 percent; management and general, 20 percent; and fund-raising, 15
percent.
10. Net assets were released to reflect satisfaction of state grant requirements that the grant resources be used for public
health 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 a
minus sign. Round the intermediate and final answers to the nearest dollar amount.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5a8374e2-0c11-468f-938f-bf163a68d0f0%2Fe9a6b851-dcdf-4d1f-ae09-bdd7392849e4%2Fas2r1wc_processed.png&w=3840&q=75)
Transcribed Image Text: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 salaries
and fringe benefits were accrued.
4. A donor pledged $120,000 for construction of a new building, payable over five fiscal years, commencing in 2025. The
discounted value of the pledge is expected to be $96,260.
5. Office equipment was purchased for $14,000. The useful life of the equipment is estimated to be five years. Office
furniture with a fair value of $11,600 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.
6. Telephone expense for the year was $7,200, printing and postage expense was $14,000 for the year, utilities for the
year were $10,300 and supplies expense was $6,300 for the year. At year-end, an immaterial amount of supplies
remained 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 clerical
activities.
. It is estimated that 90 percent of the pledges made for the 2024 year will be collected. Depreciation expense is
recorded 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 health
education, 35 percent; community service, 30 percent; management and general, 20 percent; and fund-raising, 15
percent.
10. Net assets were released to reflect satisfaction of state grant requirements that the grant resources be used for public
health 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 a
minus sign. Round the intermediate and final answers to the nearest dollar amount.)
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