Question

Statement of Activities:

	Debit	Credit
Cash	$156,500
Pledges Receivable—Without Donor Restrictions	41,000
Estimated Uncollectible Pledges		$4,100
Inventory	2,800
Investments	178,000
Furniture and Equipment	210,000
Accumulated Depreciation—Furniture and Equipment		120,000
Accounts Payable		20,520
Net Assets Without Donor Restrictions		196,500
Net Assets With Donor Restrictions—Programs		50,500
Net Assets With Donor Restrictions—Permanent Endowment		140,000
Contributions—Without Donor Restrictions		378,820
Contributions—With Donor Restrictions—Programs		38,100
Investment Income—Without Donor Restrictions		11,200
Depreciation Expense	30,000
Printing and Publishing Expense	4,190
Rent and Utility Expense	32,000
Salaries and Fringe Benefit Expense	288,410
Supplies Expense	5,940
Telephone and Postage Expense	4,500
Utilities Expense	6,400
Totals	$959,740	$959,740

a. Salaries and Fringe Benefit Expenses were allocated to Program Services and Supporting Expenses in the following percentages: i. Program 1: 40% ii. Program 2: 20% iii. Program 3: 10% iv. Management and General: 20% v. Fund-Raising: 10%

b. Rent and Utility, Supplies, Printing and Publishing, and Telephone and Postage Expenses were allocated in the same manner as Salaries and Fringe Benefit Expenses.

c. Depreciation Expense was divided equally to each functional expense category.

	Without Donor Restrictions	With Donor Restrictions	Total
Revenues, Gains, and Other Support:
Contributions			$0
Investment Income			0
Total Revenues, Gains, and Other Support	$0	$0	$0
Expenses and Losses:
Program Services:
Program 1			0
Program 2			0
Program 3			0
Total Program Expenses	$0	$0	$0
Support Expenses:
Management and General			0
Fundraising			0
Total Support Expenses	$0	$0	$0
Total Expenses and Losses	0	0	0

Answer 1

Working Note:

1. Calculation of Expenses and Losses function wise:

2. Since there is nothing stated for Utilities expenses, we could assume that it will be allocated to each function in same ratio.

3. For Depreciation, it will be allocated equally to all functions (Program 1-3, Management and General, Fund raising).