Prepare a statement of revenues - deferral method, Financial Accounting

Prepare a statement of revenues - deferral method:

Wise Owls, an NFPO, began operations at the beginning of 20X1 to provide free tutoring and homework assistance, as well as a nutrition program, to low-income immigrant children.  The local school board has provided Wise Owls with the use of a wing of a school at a heavily discounted rate of $1,000 per month.  During 20X1, Wise Owls rented the wing for the full year and plans to continue to do so until it can construct its own building.  Wise Owls is funded primarily by donations. 

This year's fundraiser was very successful and exceeded expectations. In addition to the net proceeds of $350,000 from the fundraising event, another $50,000 was pledged by attendees, but most of these pledges have not yet been collected.  They will probably be collected early next year.  Of the $50,000 pledged, $10,000 was pledged for the purchase of land, and Wise Owls received it a few days after its year-end.  Of the $350,000 raised, $40,000 was designated for the purchase of a tract of land on which the organizationplansto erect a building for its programs.  Wise Owls still needs to raise another $10,000 before the land can be purchased.  If everything goes according to plan, it will be able to purchase the land for $60,000 within the first six months of 20X2.

Wise Owls is especially happy with its fundraiser because the government has committed to provide matching funds, to a maximum of $250,000, of the net proceeds raised for operations.  It received a letter from the government two weeks after year-end advising it that its application had been approved and that it can expect the grant in six weeks.

Wise Owls has had good support from the local community. Four grocery stores in the area provided donations totaling $25,000 of food for Wise Owls' nutrition program.  An office supply store provided $2,500 of school supplies and a card for $5,000 of photocopying services.

All of the people working at Wise Owls are volunteers except for the full-time director and the part-time volunteer coordinator.During 20X1, the director was paid $70,000 and the coordinator was paid $26,000. $2,000 of the amount paid to the coordinator was an advance against her salary in January, 20X2. Normally, advances are not allowed; however, due to extenuating circumstances, the board allowed it.

During 20X1, Wise Owls spent $53,000 on food, $10,000 on school supplies, and $90,000 on other operating expenses.

Wise Owls will buy 40 laptop computers in the next year for use in several of its programs. The director has negotiated a deal with a supplier to get the computers for $20,000.  The computers should be delivered in a month, with payment due on delivery.

Posted Date: 2/12/2013 5:04:45 AM | Location : United States







Related Discussions:- Prepare a statement of revenues - deferral method, Assignment Help, Ask Question on Prepare a statement of revenues - deferral method, Get Answer, Expert's Help, Prepare a statement of revenues - deferral method Discussions

Write discussion on Prepare a statement of revenues - deferral method
Your posts are moderated
Related Questions
I need help with a practice test so I can study well for my midterm soon this week.

1. When preparing the operating activities section of the statement of cash flows using the indirect method, a decrease in accounts recievable is subtracted from net income. True o

concept meaning features scope importance origin initiative in india

what is the treatment of increase in allowance receivable.

Since 1968, Dracula Limited has traded in Doncaster, South Yorkshire as a manufacturer of fancy-dress and theatrical costumes. It produces a wide range of general theatrical costum

Can you help me with that?

disscuss the applicability of a operating cycle in vegetable growing bussiness in uganda

Fully secret trusts This is where neither the existence nor the terms of the trust are disclosed in the will. The trust will be enforced only if the following conditions are

Define the term- How are businesses organised Nearly all businesses which involve more than a few owners and/or employees are set up as limited companies. This means that finan

In the current year, Company A is formed with $630,000 in capital from the sale of 21,000 shares of stock at $30 a share. Company A, which has no other operations, immediately acqu