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:DebitsCreditsAccounts payable $23,600Accounts receivable (net)$46,300 Accrued interest receivable16,700 Accumulated depreciation 3,260,500Cash110,000 Contributed services 26,000Contributions—no restrictions 2,410,000Contributions—purpose restrictions 796,000Contributions—endowment 2,371,700Current pledges receivable75,500 Education program expenses1,536,100 Fund-raising expenses116,500 Investment revenue—purpose restrictions 86,500Training seminars expenses4,546,100 Land, buildings, and equipment5,610,700 Long-term investments2,743,300 Management and general expenses396,600 Net assets without donor restrictions 448,000Net assets with donor restrictions 2,035,000Net gains on endowments—no restrictions 17,500Noncurrent pledges receivable390,200 Program service revenue—no restrictions 5,978,100Postemployment benefits payable (long-term) 200,900Reclassification—Satisfaction of program restrictions267,400 Reclassification—Satisfaction of time restrictions215,600 Reclassification—Satisfaction of program restrictions 267,400Reclassification—Satisfaction of time restrictions 215,600Research program expenses1,282,700 Short-term investments750,900 Supplies inventory32,200 Totals$18,136,800$18,136,800Required: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.

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

Answered: The Ombudsman Foundation is a private…

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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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		$23,600
Accounts receivable (net)	$46,300
Accrued interest receivable	16,700
Accumulated depreciation		3,260,500
Cash	110,000
Contributed services		26,000
Contributions—no restrictions		2,410,000
Contributions—purpose restrictions		796,000
Contributions—endowment		2,371,700
Current pledges receivable	75,500
Education program expenses	1,536,100
Fund-raising expenses	116,500
Investment revenue—purpose restrictions		86,500
Training seminars expenses	4,546,100
Land, buildings, and equipment	5,610,700
Long-term investments	2,743,300
Management and general expenses	396,600
Net assets without donor restrictions		448,000
Net assets with donor restrictions		2,035,000
Net gains on endowments—no restrictions		17,500
Noncurrent pledges receivable	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	215,600
Reclassification—Satisfaction of program restrictions		267,400
Reclassification—Satisfaction of time restrictions		215,600
Research program expenses	1,282,700
Short-term investments	750,900
Supplies inventory	32,200
Totals	$18,136,800	$18,136,800

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.

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