Question $15(34$ points$)$

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Big City Giving $($BCG$)$ is a not$-$for$-$profit organization that provides human welfare services in New York City. BCG prepares its financial statements on the accrual basis of accounting and follows GAAP for not$-$for$-$profit organizations. It ended FY $2019$ with the following account balances $($in no particular order$)$:

Mortgage Payable$792,000$Accounts Payable$130,000$Wages Payable$40,000$Accounts Receivable, net$0$Pledges Receivable, net$336,000$Cash$62,400$Inventory$42,000$Prepaid Expenses$1,600$Net Assets Without Donor Restrictions$520,000$PP&E$,$ net$1,040,000$

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The following financial events occurred during FY $2020,$ which ended December $31,2020$:

BCG earned and received payment on $$175,000$ of public contracts paid for by the city and state governments during the year. $[$Use "Contract Revenue" as the line item in the financial statements, as appropriate.$]$

BCG used $$27,000$ of supplies during the year to provide goods and services.

BCG paid $$9,700$ each month for rent during FY $2020.$ In addition, BCG$\text{'}$s landlord required that the organization pay an additional $$10,000$ for the first month's rent of FY $2021$ before the end of FY $2020.$ BCG also paid $$4,600$ per month during the year for utilities. $[$Record rent and utilities separately in the financial statements, as appropriate.$]$

BCG earned $$70,000$ from providing welfare services to clients and collected $80\%$ of this amount. The remaining balance at the end of the fiscal year has been determined to be uncollectible. $[$Use "Welfare Revenue" as the line item in the financial statements, as appropriate.$]$

BCG earned $$157,000$ in new donations that are available for any purpose, of which $$137,000$ was collected in cash. It is anticipated that the remaining balance will be collected in the next fiscal year. $[$Use "Contributions" as the line item in financial statements, as appropriate.$]$

BCG paid the bank $$40,000.$ Of this amount, $20\%$ was for interest and the remainder was for the repayment of principal.

Employees earned $$255,600$ in salaries for work performed in FY $2020.$ Employees earned $$240,000$ in FY $2019.$ Salaries are earned evenly throughout the fiscal year and BCG pays salaries with a two$-$month lag.

A licensed, professional accountant volunteered and provided tax prep services during the fiscal year. The service is valued at $$4,700$ and BCG would have paid for the services if the donation had not been made.

BCG sold and received $$167,000$ in cash for property that the organization was no longer using. BCG also recorded $$47,000$ of depreciation on its remaining property, plant, and equipment during FY $2020.$

Record these events in a transactions worksheet and use that sheet to create the Balance Sheet, Activity Statement, and the Cash Flow Statement for BCG for FY $2020.$

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Big City Giving $($BCG$)$ is a not$-$for$-$profit organization that provides human welfare

services in New York City. BCG prepares its financial statements on the accrual basis of

accounting and follows GAAP for not$-$for$-$profit organizations. It ended FY $2019$ with

the following account balances $($in no particular order$)$:

The following financial events occurred during FY $2020,$ which ended December $31,$

$2020$:

BCG earned and received payment on $$175,000$ of public contracts paid for by

the city and state governments during the year. $[$Use "Contract Revenue" as the

line item in the financial statements, as appropriate.$]$

BCG used $$27,000$ of supplies during the year to provide goods and services.

BCG paid $$9,700$ each month for rent during FY $2020.$ In addition, BCG$\text{'}$s

landlord required that the organization pay an additional $$10,000$ for the first

month's rent of FY $2021$ before the end of FY $2020.$ BCG also paid $$4,600$ per

month during the year for utilities. $[$Record rent and utilities separately in the

financial statements, as appropriate.$]$

BCG earned $$70,000$ from providing welfare services to clients and collected

$80\%$ of this amount. The remaining balance at the end of the fiscal year has been

determined to be uncollectible. $[$Use "Welfare Revenue" as the line item in the

financial statements, as appropriate.$]$

BCG earned $$157,000$ in new donations that are available for any purpose, of

which $$137,000$ was collected in cash. It is anticipated that the remaining

balance will be collected in the next fiscal year. $[$Use "Contributions" as the line

item in financial statements, as appropriate.$]$

BCG paid the bank $$40,000.$ Of this amount, $20\%$ was for interest and the

remainder was for the repayment of principal.

Employees earned $$255,600$ in salaries for work performed in FY $2020.$

Employees earned $$240,000$ in FY $2019.$ Salaries are earned evenly througho

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