Statement of Activities for a Voluntary Health and Welfare Organization
The following information pertains to United Ways, a private voluntary health and welfare organization, for the year ended December 31, 20X3.
Balances in net assets at January 1, 20X3: |
|
Unrestricted | $3,000,000 |
Temporarily restricted | 5,000,000 |
Permanently restricted | 6,000,000 |
The following transactions occurred during the year ended December 31, 20X3:
1. Received cash donations of $500,000 from donors who did not place any time or purpose restrictions on their donations.
2. Received $1,000,000 of pledges from donors to be received in 20X4; it was estimated that 5 percent of the pledges would not be collected. Donors did not place any restrictions on the use of their pledges.
3. Earned investment income of $200,000 on endowment investments that donors permanently restricted for research activities.
4. Designated $225,000 of the $500,000 of cash donations received in 20X3 for computer acquisitions.
5. Spent $150,000 of the $200,000 of investment income earned on endowment investments on research during the year ended December 31, 20X3. (This amount is included in the $250,000 shown below for research expenses.)
6. Acquired $100,000 of equipment from donations made in 20X2 that donors had restricted for that purchase. The governing board of United Ways reports acquisitions of capital assets as unrestricted.
7. Received donated audit services that would have cost $15,000 from the organization’s accounting firm.
8. The organization learned that the fair value of endowment investments was $600,000 higher at the end of 20X3 than it had been at the beginning of 20X3. United Ways did not acquire or sell any endowment investments during 20X3. Gains and losses on endowment investments are treated as permanently restricted.
9. Incurred program and supporting services expenses during 20X3 as follows (depreciation expense for 20X3 has been properly allocated to the functional expenses):
Research | $250,000 |
Public health education | 100,000 |
Community services | 150,000 |
Management and general (does not include the audit that was donated) | 125,000 |
Fund-raising | 115,000 |
Required
Prepare a statement of activities in good form for United Ways for the year ended December 31, 20X3.
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