NPO, #questionWise Owls, an NFPO, began operations at the beginning of 20X1 to provide, Financial Accounting

NPO, Financial Accounting

Assignment Help:

#questionWise 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 organization plans to 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.

Required:

Using the deferral method, prepare a statement of revenues and expenses and a statement of changes in net assets for Wise Owls for 20X1. (6 marks)

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages

NPO, Financial Accounting

Related Discussions:- NPO

Explain r and r-squared- f-test and interpret its value, To decide in what ...

Provide doubtful debt , provide 5% for doubtful debt what is the journal en...

Limited liability partnership, Limited Liability Partnership (LLP) - GENERA...

Determine the indicated market price per share, Q. Determine the indicated ...

Practice Test, I need help with a practice test so I can study well for my ...

Financial strategy IRR, what managers should know about internal rate of re...

Estimate tax rate and pre tax balance, Refer to Note 12, Employee Benefit P...

Decisions about managerial remuneration packages, Q. Decisions about manage...

Prior period adjustments, Q. Prior period adjustments a. may only increase ...

BUDGETING, In the context of the public sector, discuss incremental system...

Write Your Message!

Featured Services

Online Tutoring

Project Development

Exam Preparation

Course Help

Assignment Help

Popular Subjects

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT