Help Yourself (H Y) was incorporated as a not-for-profit education organization with a December 31 year-end. HY reports to a government agency that requires audited annual financial statements to be filed. HY uses the deferral method for accounting for contributions. Ms. Johnson, the executive director of HY, is not familiar with the preparation of financial statements. She has approached you, as a professional accountant, for advice on how to address the following issues: 1. Ms. Johnson manages the organization with the help of his son and two local teachers, all of them are volunteers. 2. HY had planned on launching an educational campaign early in the following year on the problems faced by youth and had received a $50,000 donation specifically to fund the campaign. At its most recent board meeting in early December, the board decided not to proceed with the campaign because another organization had initiated a similar campaign. Ms. Johnson contacted the donor to let her know of the board's decision and the donor indicated that she was willing to let HY keep the donation. 

Required Advice Ms. Johnson on the appropriate accounting for the above two issues and provide support for your recommendation(s).

Answer rating: 100% (QA)

Issue 1 Ms Johnson managing the organization with the help of volunteers As a notforprofit organization Help Yourself HY relies on volunteers includin... View the full answer