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
A summary of management oriented activity ratio are specified below. It describes the ratios and also their major purposes. Activity Ratios (Secondary Group) The numer

speciman of accounts preparation in stock and debtor system.

ACT presently is all-equity financed. This reflects the stance of the former CEO, a dominant personality who stated repeatedly: "I don't want us to be in thrall to the demands of t

Question A The key functions of financial system are to provide a link between savers and investors. What are the key functions of financial market Question B Describe the me

The time t= 0 continuously compounded term structure of interest rates is given by R(0 , T) = 0. 05 - 0. 005 e - 0.10 T . Find the price of a Treasury bond with exactly 3

1. Assume that the following data relative to Eddy Company for 2014 is available: Net Income $1,400,000 Transactions in Common Shares Change Cumulative Jan. 1, 2014, Beginnin

Carminho Building Products Ltd (an Australian company) is a client of Rodrigues Accounting (RA). Carminho Building Products Ltd (CBP) is involved in the development, manufacture a

write a short note of concept and convention

For several firms trade payables - suppliers of goods and services - represent the major component of current liabilities the amounts owed by the company which have to be repaid wi

Illustrations of retained profits brought forward H Ltd acquired 75% of the ordinary shares of S Ltd since S Ltd was incorporated. The Summarized income statement for the two c