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
Suppose a company will issue new 25-year debt with a par value of $1,000 and a coupon rate of 8%, paid annually. The tax rate is 40%. If the flotation cost is 3% of the issue proce

The conflicting interests of users We have seen above that every user group looks at a business from a different perspective and has its own individual interests. This means th

I am an AAT student studying lvl 3 AAT at college. I wish to learn how to complete self assessment end of year tax return forms for other people. That is because I have already bee

Illustration of Bankruptcy Njuguna Mwandawiro, carrying on a business as a trader in Likoni, Mombasa, finds himself insolvent, and on 15 August 1997 files his petition in bankr

Lenders'  evaluation:   Current  Assets  to  Current  Liabilities,  Quick  Assets  that is current assets minus inventories to Current Liabilities, Long term Debt to Net Assets, to

Q. Describe about Backdating? i) Exercise price is based on a lower share price prior to option grant date. Practice of marking a document with a date that precedes actual date

Subsidiary company exclusion features 1) The standard does not require consolidation of a subsidiary acquired when there is evidence that the control is intended to be temporar

In common terms the future value of an annuity or regular annuity is specified by the subsequent formula: FVA n = A (1 + k ) n -1 + A (1 + k ) n - 2 + ... + A   .............

1.Assume that Abel business corporation is purchasing new equipment, for 350,000$ at the beginning of 2014. Assume that Abel business corporation is in the 30% corporate tax bracke

How do I prepare a partial income statement under each inventory method?