The Ombudsman Foundation is a private nonprofit organization providing dispute resolution and conflict management training. TheFoundation had the following preclosing trial balance at December 31, 2024, the end of its fiscal year:Account:Accounts payableAccounts receivable (net)Accrued interest receivableAccumulated depreciationCashContributed servicesContributions-no restrictionsContributions-purpose restrictionsContributions-endowmentCurrent pledges receivableEducation program expensesFund-raising expensesInvestment revenue-purpose restrictionsTraining seminars expensesDebitsCredits$25,500$48,10016,7003,522,200119,40027,2002,492,00082,3001,550,100126,6004,586,400802,0002,114,10094,200Land, buildings, and equipmentLong-term investmentsManagement and general expensesNet assets without donor restrictionsNet assets with donor restrictions5,659,5002,765,400409,600496,4002,048,000Net gains on endowments-no restrictionsNoncurrent pledges receivable18,700390,200Program service revenue-no restrictions5,978,100Postemployment benefits payable (long-term)200,900Reclassification-Satisfaction of program restrictions267,400Reclassification-Satisfaction of time restrictionsReclassification-Satisfaction of program restrictionsReclassification-Satisfaction of time restrictionsResearch program expensesShort-term investments215,600267,400215,6001,278,700752,100Supplies inventory34,200Totals$18,302,300$18,302,300Required:a. Prepare closing entries for the year-end, using separate entries for each net asset classification.b. Prepare a Statement of Activities for the year ended December 31, 2024.Answer is not complete.Complete this question by entering your answers in the tabs below.Required ARequired BPrepare closing entries for the year-end, using separate entries for each net asset classification.Note: If no entry is required for a transaction or event, select "No Journal Entry Required" in the first account field.NoEventA1General JournalDebitCreditReclassification to Net Assets without Donor Restrictions-Expiration of Time215,600Reclassification to Net Assets without Donor Restrictions-Satisfaction of Pro267,400✓Contributed Services-without Donor Restrictions✓2,492,000 xProgram Service Revenue-without Donor Restrictions✓5,978,100Net Gains on Endowment Investments-without Donor Restrictions18,700Contributions-without Donor Restrictions27,200 xTraining Seminar Expense4,586,400✔Education Program ExpenseResearch Program Expense✓Management and General ExpenseFund-Raising ExpenseNet Assets-without Donor Restrictions1,550,1001,278,700409,600119,400 x496,400 x< Required ARequired B >

Not-for-profit organizations are established to serve a particular mission or purpose, such as…

Answered: Required: a. Prepare closing entries…

Required: a. Prepare closing entries for the year-end, using separate entries for each net asset classification. b. 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

Q: Prepare the entry to record depreciation for 2026.

A: Lets understand the basics.Depreciation is a reduction in value of asset due to wear and tear,…

Q: What is the correct process for determining depreciation expense for partial periods? A: The…

A: Lets understand the basics. Depreciation is a reduction in value of asset due to wear and tear,…

Q: Answer the below questions using the FASB Codification. Make sure that you properly cite the ASC…

A: According to ASC 410-20-25-1, an Asset Retirement Obligation (ARO) is a legal obligation associated…

Q: A change in depreciation method is to be accounted for in the current year and future years going…

A: A change in depreciation method involves altering how an asset's value is systematically reduced…

Q: Entity D purchased equipment at a cost of $520,000 in January 2022. As of January 1, 2024,…

A: DEPRECIATION EXPENSE Depreciation means gradual decrease in the value of an asset due to normal wear…

Q: GAAP regulations state that for each of the types of plant assets, a company must disclose the…

A: The Generally Accepted Accounting Principles (GAAP) are a set of rules, standards, and practices…

Q: MASH Inc. Statement of Financial Position as at December 31, Current assets Cash Land Building…

A: Ratio Analysis - The ratio is the technique used by the prospective investor or an individual or…

Q: Blossom Co, purchased a machine on January 1, 2018, for $539,000. At that time, it was estimated…

A: The depreciation expense is the decrease in the value of assets during their useful life that is…

Q: Waiting for Answer

A: 1. Explanation:The book value (also known as the carrying amount) of a fixed asset is determined by…

Q: All of the following are key steps related to accounting for impairments of long-term operating…

A: The question is asking to identify the step that is not typically involved in the process of…

Q: Which of the following is NOT correct? i. Initial allowance is claimable in the year the qualifying…

A: Capital allowances and depreciation appear to be two tax-deduction techniques that businesses can…

Q: If a company chooses the revaluation model permitted in IAS 16 for measuring non-current assets,…

A: Non-current assets, also known as long-term assets or fixed assets, are resources that a company…

Q: Classified Balance Sheet: Identify each of the following elements as a Current Asset (CA),…

A: Classified balance sheet is a financial statements it is similar to standard balance sheet and…

Q: Provide the 2020 adjusting journal entry (both accounts and amounts) that Newell Brands made to…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: A plant asset's book value equals its estimated salvage value: A. On the date of the asset's…

A: Depreciation on a depreciable asset is computed after considering its salvage value so that at the…

Q: Events Affecting the 2018 Accounting Period 1. Acquired $65,000 cash from the issue of common stock.…

A: AE refers to Accounting Equation is considered as the foundation of the accounting system, under…

Q: To be included in property, plant, and equipment, an asset must have all of the following except…

A: The objective of the question is to identify which of the given options is not a requirement for an…

Q: Current Attempt in Progress Joseph Geary, the controller of Carla Vista Company, has reviewed the…

A: All assets value goes down due to time being and that decrease in value is depreciation of building…

Question

100%

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:
Accounts payable
Accounts receivable (net)
Accrued interest receivable
Accumulated depreciation
Cash
Contributed services
Contributions-no restrictions
Contributions-purpose restrictions
Contributions-endowment
Current pledges receivable
Education program expenses
Fund-raising expenses
Investment revenue-purpose restrictions
Training seminars expenses
Debits
Credits
$25,500
$48,100
16,700
3,522,200
119,400
27,200
2,492,000
82,300
1,550,100
126,600
4,586,400
802,000
2,114,100
94,200
Land, buildings, and equipment
Long-term investments
Management and general expenses
Net assets without donor restrictions
Net assets with donor restrictions
5,659,500
2,765,400
409,600
496,400
2,048,000
Net gains on endowments-no restrictions
Noncurrent pledges receivable
18,700
390,200
Program service revenue-no restrictions
5,978,100
Postemployment benefits payable (long-term)
200,900
Reclassification-Satisfaction of program restrictions
267,400
Reclassification-Satisfaction of time restrictions
Reclassification-Satisfaction of program restrictions
Reclassification-Satisfaction of time restrictions
Research program expenses
Short-term investments
215,600
267,400
215,600
1,278,700
752,100
Supplies inventory
34,200
Totals
$18,302,300
$18,302,300
Required:
a. Prepare closing entries for the year-end, using separate entries for each net asset classification.
b. Prepare a Statement of Activities for the year ended December 31, 2024.
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Required A
Required B
Prepare closing entries for the year-end, using separate entries for each net asset classification.
Note: If no entry is required for a transaction or event, select "No Journal Entry Required" in the first account field.
No
Event
A
1
General Journal
Debit
Credit
Reclassification to Net Assets without Donor Restrictions-Expiration of Time
215,600
Reclassification to Net Assets without Donor Restrictions-Satisfaction of Pro
267,400✓
Contributed Services-without Donor Restrictions
✓
2,492,000 x
Program Service Revenue-without Donor Restrictions
✓
5,978,100
Net Gains on Endowment Investments-without Donor Restrictions
18,700
Contributions-without Donor Restrictions
27,200 x
Training Seminar Expense
4,586,400✔
Education Program Expense
Research Program Expense
✓
Management and General Expense
Fund-Raising Expense
Net Assets-without Donor Restrictions
1,550,100
1,278,700
409,600
119,400 x
496,400 x
< Required A
Required B >

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define non-profit organization

VIEW

Step 2: Prepare closing entries

VIEW

Step 3: Calculate Contribution Revenue

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Financial Reporting in Hyperinflationary Economies

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

Average age of a company's long-term operating assets is computed as ________. Group of answer choices the amount of depreciation expense divided by accumulated depreciation the balance of ending net fixed assets divided by depreciation expense the amount of depreciation expense divided by the balance of ending net fixed assets the amount of accumulated depreciation divided by depreciation expense
Compute for the TOTAL amount of Accumulated depreciation for the company's PPE
Sheridan Company purchased a new plant asset on April 1, 2025, at a cost of $732,000. It was estimated to have a service life of 20 years and a salvage value of $60,000. Sheridan' accounting period is the calendar year.
An asset classified as property, plant, and equipment on the balance sheet must have which one of the following characteristics? a. it must have an expected life of more than one year b. it must be held for use in the normal course of business c. it must be tangible in nature d. all of the above
Which of the following is NOT correct? i. Initial allowance is claimable in the year the qualifying expenditure is incurred; however, it can be deferred to another year. ii. Annual allowance is not given in the year of disposal. iii. Annual allowance may be granted if a qualifying asset is temporarily out of use. iv. Capital allowance is granted instead of depreciation for all assets.
H1. Account
AASB 116 requires disclosure of the following by asset class: I II III IV The useful lives of assets Yes No Yes Yes Accumulated impairment losses No Yes Yes Yes Items pledged as security Yes Yes No Yes Additions during the year Yes Yes Yes No ΟΙ O IV. O III Oll
The fact that generally accepted accounting principles allow companies flexibility in choosing between certain allocation methods can make it difficult for a financial analyst to compare periodic performance from firm to firm. Suppose you were a financial analyst trying to compare the performance of two companies. Company A uses the double-declining- balance depreciation method. Company B uses the straight-line method. You have the following information taken from the 12/31/2021 year-end financial statements for Company B: Income Statement Depreciation expense $10,000 Balance Sheet Assets: Plant and equipment, at cost Less: Accumulated depreciation Net $ 200,000 (40,000) $ 160,000 You also determine that all of the assets constituting the plant and equipment of Company B were acquired at the same time, and that all of the $200,000 represents depreciable assets. Also, all of the depreciable assets have the same useful life and residual values are zero. Required: 1. In order to compare…
Choose the appropriate definition for each term. Term Amortization Useful life Licensing right Least and latest rule Component allocation Fixed asset turnover ratio Depreciable cost Copyright Depreciation schedule Revenue expenditures 2 Definition
Choose the appropriate definition for each term. Term Long-lived assets Capitalization of cost Units-of-production method Definition Assets that will be used for more than a year. How expenses are reported in the income statement. A depreciation method that produces higher amounts of depreciation expense in the early years of an asset's life and lower amounts in the later years. Carrying value Asset impairment loss Depreciation
What categories of property, plant, equipment, and intangible assets does Targetreport in its January 30, 2016, balance sheet?
PLEASE provide Solutions