loader  Loading... Please wait...

Question(s) / Instruction(s):

43     (Journal entries to record transactions)
Prepare journal entries to record the following transactions of Southtown Youth Alliance, Inc (SYA), a not-for-profit entity that provides counseling, training, and other programs for young people. SYA accounts for all transactions in a single fund, recording them so as to identify the three classes of net assets (unrestricted, temporarily restricted, and permanently restricted) required for financial reporting. (SYA initially records all donations with program restrictions as temporarily restricted until used for the intended purpose.)
          a.     SYA receives pledges of $150,000 to help finance its activities for the year. SYA expects that it will ultimately receive 90% of these pledges in cash.
          b.     During the year, SYA receives cash of $130,000 against the pledges and writes off $10,000 of the pledges as uncollectible.
          c.     SYA incurs the following program expenses, financed by its general revenues:
               (1) Counseling programs, $40,000
               (2) Training programs, $50,000
          d.     SYA has a contract with the county in which it is located to administer a youth recreation program. It incurs $20,000 of expenses under the program, and sends an invoice to the county for that amount.
          e.     Carole Colin donates $5,000, stipulating that SYA must use her gift to obtain the services of a well-known country singer for a special concert.
          f.     SYA gives the concert referred to in e. SYA pays $5,000 to the country singer, and charges the expense to Recreation programs.
          g.     Betsy Crandall, a local attorney, donates 10 hours of her time to SYA drawing up legal contracts. Ms. Crandall also donates 20 hours preparing lunch for the youths. She normally charges $200 an hour for her legal services. SYA would have hired an attorney and a cook to do this work if Ms. Crandall had not volunteered her time.
          h.     Suzanne Lowensohn donates common stock to SYA, stipulating that the stock must be used during SYA's next fiscal year for any programs SYA wishes to undertake. At the time of the gift, the stock has a fair value of $10,000.
          i.     When SYA closes its books at year-end, the stock gift from Ms. Lowensohn has a fair value of $11,000.

Find Similar Answers by Subject

Student Reviews

Rate and review your solution! (Please rate on a Scale of 1 - 5. Top Rating is 5.)

Expert's Answer
Download Solution:

This solution includes:

  • Plain text
  • Cited sources when necessary
  • Attached file(s)
  • Solution Document(s)

Reach Us