Community Service, Inc., is a nongovernmental NFP that began…

Question Community Service, Inc., is a nongovernmental NFP that began… Community Service, Inc., is a nongovernmental NFP that began operations on January 1, Year 1. It performs voluntary services and derives its revenue primarily from voluntary contributions from the general public. The NFP reports contributions with restrictions that expire in the same period as net assets without donor restrictions.Selected transactions that occurred during Community’s Year 2 calendar year:Unrestricted written promises to contribute cash–Year 1 and Year 2 Year 1 promises collected in Year 2 $22,000Year 2 promises collected in Year 2 95,000Year 2 promises uncollected 28,000Written promises to contribute cash restricted to use for community college scholarships–Year 1 and Year 2 Year 1 promises collected and expended in Year 2 10,000Year 2 promises collected and expended in Year 2 20,000Year 2 promises deemed uncollectible 12,000Written promise to contribute $25,000 if matching funds are raised for the capital campaign during Year 2 Cash received in Year 2 from contributor as a good faith advance 25,000Matching funds received in Year 2 0Cash received in Year 1 with donor’s only stipulation that a bus be purchased Expenditure of full amount of donation 7/1/Year 2 37,000Other selected transactions that occurred during Community’s Year 2 calendar year:Donor-restricted perpetual endowment consisting of debt securities received in Year 2. The income is to be used for community services. Year 2 investment return is expended in Year 3. Face amount $90,000Fair value at time of receipt 88,000Fair value at 12/31/Year 2 87,000Interest earned in Year 2 9,000Citizens volunteered to serve meals to the homeless 400 hrs. free; fair value of services $5 per hr. 2,000Short-term investment in equity securities in Year 2 Cost 10,000Fair value 12/31/Year 2 12,000Dividend income 1,000Music festival to raise funds for a local hospital Admission fees 5,000Sales of food and drinks 14,000Expenses 4,000Reading materials donated to Community and distributed to children in Year 2 Fair value 8,000Federal youth training fee for service grant Cash received during Year 2 30,000Instructor salaries paid 26,000Other cash operating expenses Business manager salary 60,000General bookkeeper salary 40,000Director of community activities salary 50,000Space rental (75% for community activities, 25% for office activities) 20,000Printing and mailing costs for pledge cards 2,000Interest payment on short-term bank loan in Year 2 1,000Principal payment on short-term bank loan used for program services in Year 2 20,000Complete Community Service’s Year 2 statement of activities using the information above. Enter the appropriate amounts in the designated cells below. Enter all amounts as positive values. If no entry is necessary, enter a zero (0).Element$dollar Amount1. Contributions — net assets with donor restrictions? 2. Revenues — fees ? 3. Investment income — net assets with donor restrictions ? 4. Program expenses? 5. General fundraising expenses (excludes special events) ? 6. Income on long-term investments other than the endowment — net assets without donor restrictions? 7. Contributed voluntary services? Business Accounting ACCOUNTING 424 Share QuestionEmailCopy link Comments (0)