Dreamers Association (DA) is an organization that provides counseling and recreation programs for teenagers. DA’s programs are financed through a contract with the county in which it is located and through contributions from local citizens. The following transactions occurred during 2020 (fiscal year ending 12/31/2020):

a) DA received pledges of gifts in the amount of $18,500, to be used as the DA’s board of trustees consider appropriate (i.e., Gifts with no strings attached). Of the $18,500 pledges made during 2020, DA’s Finance Director estimates $18,000 would be eventually collected based on previous experience, but not all.

b) DA collected $17,000 cash on the pledges received previously.

c) Due to the COVID-19, DA started offering virtual programs. In order to help with their virtual program services, a generous donor contributed 3 computers, which all together valued at $1,300 at the time of donation 

d) DA paid $800 cash to purchase athletic equipment.

e) DA’s employees earned $12,000 during 2020. DA paid the employees $10,000 in wages (i.e., gave paychecks).

f) DA billed the county $6,500 for the services it has performed under its contract with the county.

g) DA borrows $10,000 from the bank. While they are not required to pay it back until the end of following year, they paid $100 in interest during this fiscal year.

DA began the year 2020 with the following balances (shown in alphabetical order) in their accounts:

Accounts Receivable	$1,500
Allowance for Uncollectible Pledges	$(300)
Cash	$4,600
Equipment (Computers, athletic equip., etc.)	$0
Net Assets without Donor Restrictions	$8,500
Loan Payable	$0
Pledges Receivable	$3,200
Wages Payable	$500

Please create a financial transaction worksheet . Then, prepare a Statement of Financial Position , and Statement of Activity . You must pay attention to the format of each statement to receive the full points. Please label each statement clearly including the time period the statement represents.

Answer rating: 100% (QA)

Financial Transaction Worksheet Date Account Debit Credit Explanation 20200101 Cash 4600 Beginning balance in cash account 20200101 Accounts Receivabl... View the full answer