In: Accounting
NVOLVE was incorporated as a not-for-profit voluntary health and welfare organization on January 1, 2017. During the fiscal year ended December 31, 2017, the following transactions occurred. |
1. | A business donated rent-free office space to the organization that would normally rent for $36,700 a year. | |||||||||||
2. |
A fund drive raised $193,500 in cash and $117,000 in pledges that will be paid within one year. A state government grant of $167,000 was received for program operating cost related to public health education. |
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3. |
Salaries and fringe benefits paid during the year amounted to $210,260. At year-end, an additional $17,700 of salaries and fringe benefits were accrued. |
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4. |
A donor pledged $117,000 for construction of a new building, payable over five fiscal years, commencing in 2019. The discounted value of the pledge is expected to be $95,960. |
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5. |
Office equipment was purchased for $13,700. The useful life of the equipment is estimated to be 4 years. Office furniture with a fair value of $11,300 was donated by a local office supply company. The furniture has an estimated useful life of 10 years. Furniture and equipment are considered unrestricted net assets by INVOLVE. |
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6. |
Telephone expense for the year was $6,900, printing and postage expense was $13,700 for the year, utilities for the year were $10,000 and supplies expense was $6,000 for the year. At year-end, an immaterial amount of supplies remained on hand and the balance in accounts payable was $5,300. |
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7. |
Volunteers contributed $16,700 of time to help with answering the phones, mailing materials, and various other clerical activities. |
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8. |
It is estimated that 80 percent of the pledges made for the 2018 year will be collected. Depreciation expense is recorded for the full year on the assets recorded in item 5. |
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9. |
Salaries and wages, and other expenses (except for the provision for uncollectible accounts which is allocated 100 percent to fund-raising) 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, 20 percent. |
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10. |
Net assets were released to reflect satisfaction of state grant requirements that the grant resources be used for public health education program purposes. |
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11. |
All nominal accounts were closed to the appropriate net asset accounts. I need :
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