INVOLVE was incorporated as a not-for-profit organization on January 1, 2023. During the fiscal year ended December
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INVOLVE was incorporated as a not-for-profit organization on January 1, 2023. During the fiscal year ended December 31, 2023, the following transactions occurred.
- A business donated rent-free office space to the organization that would normally rent for $35,600 a year.
- A fund drive raised $195,500 in cash and $105,000 in pledges that will be paid next year. A state government grant of $167,000 was received for program operating costs related to public health education.
- Salaries and fringe benefits paid during the year amounted to $204,260. At year-end, an additional $14,300 of salaries and fringe benefits were accrued.
- A donor pledged $109,000 for construction of a new building, payable over five fiscal years, commencing in 2025. The discounted value of the pledge is expected to be $95,160.
- Office equipment was purchased for $12,900. The useful life of the equipment is estimated to be five years. Office furniture with a fair value of $10,500 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.
- Telephone expense for the year was $6,100, printing and postage expense was $12,900 for the year, utilities for the year were $9,200 and supplies expense was $5,200 for the year. At year-end, an immaterial amount of supplies remained on hand and the balance in accounts payable was $4,500.
- Volunteers contributed $15,900 of time to help with answering the phones, mailing materials, and various other clerical activities.
- It is estimated that 80 percent of the pledges made for the 2024 year will be collected. Depreciation expense is recorded for the full year on the assets recorded in item 5.
- All expenses were allocated to program services and support services in the following percentages: public health education, 40 percent; community service, 30 percent; management and general, 20 percent; and fund-raising, 10 percent.
- Net assets were released to reflect satisfaction of state grant requirements that the grant resources be used for public health education program purposes.
- All nominal accounts were closed to the appropriate net asset accounts.
Related Book For
Accounting For Governmental And Nonprofit Entities
ISBN: 9781260118858
19th Edition
Authors: Jacqueline Reck, Suzanne Lowensohn, Daniel Neely
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