Question

Required information [The following information applies to the questions displayed below.) INVOLVE was incorporated as a not-for-profit voluntary health and welfare organization on January 1, 2020. During the fiscal year ended December 31, 2020, the following transactions occurred. 1. A business donated rent-free office space to the organization that would normally rent for $36,300 a year. 2. A fund drive raised $191,500 in cash and $113,000 in pledges that will be paid within one year. A state government grant of $163,000 was received for program operating costs related to public health education. 3. Salaries and fringe benefits paid during the year amounted to $209,860. At year-end, an additional $17,300 of salaries and fringe benefits were accrued. 4. A donor pledged $113,000 for construction of a new building, payable over five fiscal years, commencing in 2022. The discounted value of the pledge is expected to be $95,560. 5. Office equipment was purchased for $13,300. The useful life of the equipment is estimated to be four years. Office furniture with a fair value of $10,900 was donated by a local office supply company. The furniture has an estimated useful life of 10 years. Furniture and equipment are considered net assets without donor restrictions by INVOLVE. 6. Telephone expense for the year was $6,500, printing and postage expense was $13,300 for the year, utilities for the year were $9,600 and supplies expense was $5,600 for the year. At year-end, an immaterial amount of supplies remained on hand and the balance in accounts payable was $4,900. 7. Volunteers contributed $16,300 of time to help with answering the phones, mailing materials, and various other clerical activities. 8. It is estimated that 80 percent of the pledges made for the 2021 year will be collected. Depreciation expense is recorded for the full year on the assets recorded in item 5. 9. All expenses were allocated to program services and support services in the following percentages: public health education, 40 percent; community service, 20 percent; management and general, 20 percent; and fund-raising, 20 percent. 10. Net assets were released to reflect satisfaction of state grant requirements that the grant resources be used for public health education program purposes. 11. All nominal accounts were closed to the appropriate net asset accounts.

Answer 1

Involve
Statement of Activities
For the Year ended December 31,2020
	Without Donor Restrictions	With Donor Restrictions	Total
Revenue & Other Support
Rent free office space	36300		36300
Cash raised in Fund Drive	191500		191500
Pledges paid within a year	113000		113000
State Government Grant		163000	163000
Discounted value of pledge for building		95560	95560
Office Equipment Purchased	13300		13300
Office Furniture	10900		10900
Contribution by Volunteers	16300		16300
			0
Total Revenue & Other Support	381300	258560	639860
Expenses			0
Salaries & Fringe Benefits	209860		209860
Accrued Salaries & Fringe Benefits	17300		17300
Cash paid for office equipment	13300		13300
Telephone Expense	6500		6500
Printing & Postage Expense	13300		13300
Utilities	9600		9600
Supplies Expense	5600		5600
Accounts Payable	4900		4900
Depreciation	4415		4415
			0
Total Expenses	284775	0	284775
Increase in Net Assets	96525	258560	355085
Beginning Net Assets	0	0	0
Ending Net Assets	96525	258560	355085