VHWO, accounting and reporting. Select the best answer for each of the following multiple-choice items. Items 1 through 3 are based on the following: The Bay Ridge Humane Society, a VHWO caring for lost animals, had the following financial inflows and outflows for the year ended December 31, 20X5:
|
Inflows: |
|
|
Cash received from federated campaign |
$680,000 |
|
Cash received that is designated for 20X6 operations |
30,000 |
|
Contributions pledged for 20X5, not yet received |
90,000 |
|
Contributions pledged for 20X6, not yet received |
25,000 |
|
Sales of pet supplies |
10,000 |
|
Pet adoption fees |
50,000 |
|
Outflows: |
|
|
Kennel operations |
$350,000 |
|
Pet health care |
100,000 |
|
Advertising pets for adoption |
50,000 |
|
Fund raising |
70,000 |
|
Administrative and general |
200,000 |
1. In the humane society’s statement of activities for the year ended December 31, 20X5, what amount should be reported under the classification of public support—unrestricted?
a. $740,000
b. $762,000
c. $770,000
d. $825,000
2. In the humane society’s statement of activities for the year ended December 31, 20X5, what amount should be reported under the classification of program services expense?
a. $770,000
b. $450,000
c. $550,000
d. $500,000
3. In the humane society’s balance sheet as of December 31, 20X5, what amount should be reported under the classification of public support—temporarily restricted?
a. $55,000
b. $30,000
c. $25,000
d. $0
4. Arbor Haven, a voluntary welfare organization funded by contributions from the general public, received unrestricted pledges of $500,000 during 20X6. It was estimated that 12% of these pledges would be uncollectible. By the end of 20X6, $400,000 of the pledges had been collected, nd it was expected that $40,000 more would be collected in 20X7, with the balance of $60,000 to be written off as uncollectible. Donors did not specify any periods during which the donations were to be used. What amount should Arbor Haven include under public support in 20X6 for contributions?
a. $500,000
b. $452,000
c. $440,000
d. $400,000
5. The following expenditures were among those incurred by a voluntary welfare organization during 20X7:
|
Printing of annual report |
$10,000 |
|
Unsolicited merchandise sent to encourage contributions |
20,000 |
What amount should be classified as fund-raising costs in the society’s statement of activities?
a. $0
b. $10,000
c. $20,000
d. $30,000
6. Apex Inc. donated a computer to Bird Shelter, a voluntary welfare organization. The computer cost Apex $40,000. On the date of donation, it had a book value of $25,000 and a fair value of $20,000. Bird Shelter’s depreciation expense should be based on
a. $40,000.
b. $25,000.
c. $20,000.
d. $15,000.