Question

Required information The following information applies to the questions displayed below. INVOLVE was incorporated as a not-for-profit voluntary health and welfare organization on January 1, 2020. During the fiscal year ended December 31, 2020, the following transactions occurred. 1. A business donated rent-free office space to the organization that would normally rent for $35,300 a year 2. A fund drive raised $186,500 in cash and $103,000 in pledges that will be paid within one year. A state government grant of $153,000 was received for program operating costs related to public health education. 3. Salaries and fringe benefits paid during the year amounted to $208,860. At year-end, an additional $16,300 of salaries and fringe benefits were accrued. 4. A donor pledged $103,000 for construction of a new building, payable over five fiscal years, commencing in 2022. The discounted value of the pledge is expected to be $94,560 5. Office equipment was purchased for $12,300. The useful life of the equipment is estimated to be four years. Office furnituré with a fair value of $9,900 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 $5,500, printing and postage expense was $12,300 for the year, utilities for the year were $8,600 and supplies expense was $4,600 for the year. At year-end, an immaterial amount of supplies remained on hand and the balance in accounts payable was $3,900. 7. Volunteers contributed $15,300 of time to help with answering the phones, mailing materials, and various other clerical activities. 8. It is estimated that 80 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 9. All expenses were allocated to program services and support services in the following percentages: public health education, 40 percent; community service, 20 percent; management and general, 20 percent; and fund-raising, 2 percent. 10. Ne sets were released to reflect satisfaction of state grant requirements that the grant resources be used fo public health education program purposes 11. All nominal accounts were closed to the appropriate net asset accounts.

Answer 1

Involve ournal Enteries Debit in $ Credit in $ Trans Particulars No 9 Public Health Education Program a/c Dr Community Service Program a/c Dr Management and General a/c Fund Raising a/c 118210 59105 Dr 59105 Dr. 79705 To Salaries and Benefits expense 225160 To Rent expense 35300 To Telephone expense 5500 To Printing and Postage expense 12300 To Utilities expense 8600 To Supplies expense 4600 To Depreciation expense 4065 To Provision for Uncollectibles 20600 2955250.4 118210; 295525*0.2 59105; (2955250.2) 20600 79705 10 Net assets released - satisfaction of purpose restr.- Temp. Restric. 118210 To Net assets released - satisfaction of purpose restr.- Unrestric. 118210 11 Contributions - Unrestricted a/c Dr. 231700 Unrestricted Net Assets a/c Dr. 84425 To Public Health Education Program 118210 To Community Service Program 59105 To Management and General 59105 To Fund Raising 79705 (35300+186500+9900) 231700 11b Contributions - Temporarily Restricted a/c Dr 196400 To Temporarily Restricted Net Assets 196400 (186500+9900) Temporarily Restricted Net Assets a/c Dr. 118210 To Net assets released - satisfaction of purpose restr.- Temp. Restric. 118210 Net assets released - satisfaction of purpose restr.- Unrestric. a/c Dr. 118210 118210 To Unrestricted Net Assets