Your city has a voluntary health and welfare organization (VHWD) that provides musical opportunities for inner-city youth. It does not use fund accounting, but it does identify all revenues by their net asset class. The following transactions have occurred in the past year:
The VHWD received gift pledges from donors in the amount of $25,000, which were to be used however they were needed. History shows that 95% of the pledges were collected.
After 1 month, $24,000 of the pledges was collected. There was $
1,000
written off as uncollectible.
Fair value of the stock on the date of the gift was $15 per share.
each, 2 cellos for $3,000 each, and a small harp for $5,000 for the program, using the proceeds from the stock sale.
The VHWD billed the city for $5,000 of contracted costs.
The VHWD spent
$10,000
on the following:
2,000
Administrative expense
1,000
Total
$10,000
Please make a journal entry for each of the transactions. The main areas for information on financial reporting for not-for-profit organizations (NFPOs) and VHWOs can be found in Financial Accounting Standards Board (FASB) statements 116 and 117. For your VHWO, you will have to make an additional report that is not required for NFPOs.
Provide examples of the types of information that would be included in this report. The deliverable length is all journal entries,
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