For Youth Agency (FYA) is a not-for-profit organization that provides counseling and recreation programs for youthful offenders and delinquents. FYA’s programs are financed through a contract with the county in which it is located and through contributions from local citizens. Its contract with the county provides for reimbursement of allowable costs based on monthly billings to the county. FYA uses the accrual basis of accounting, and the following transactions occurred during 2024:FYA received cash in the amount of $25,000, to be used as the FYA board of directors considers appropriate.FYA received a gift of Intel stock that had a fair market value of $1,300 total at the time of the gift. The donor sent FYA’s president a letter with the gift, saying that proceeds of the stock should be used only to purchase athletic equipment for the basketball team. FYA sold the stock upon receipt.FYA paid $800 cash for athletic equipment, using some of the proceeds received in Transaction 2. The expense was charged to the Recreation programs account.FYA spent $12,000 cash on the following: $8,000 for counseling programs, $3,000 for recreation programs, and $1,000 for administration.FYA billed the county $6,500 for costs incurred under its contract.A licensed social worker in the area donated 100 hours of her time to FYA. Her normal hourly rate is $50 per hour. The CEO appreciates the donation because otherwise he would have to purchase the counseling services.FYA borrowed $10,000 from the local bank on an unsecured note. The whole amount will be repaid next year.FYA paid the local bank $1,600, of which $400 was interest.FYA recorded $300 of depreciation for the year.FYA prepaid next year’s rent of $12,000.FYA determined that it will not be able to collect $250 of pledges that are on the balance sheet.

Answer rating: 100% (QA)

1 Cash Donation FYA received a cash donation of 25000 2 Gift of StockFYA received a gift of Intel st... View the full answer