Colorado State University Global Campus Module 6 NFP Financial Reporting Questions

Part A:

Snow Flake Community Symphony Orchestra had the following transactions for the year:

A fund drive raised $210,000 cash and $150,000 in pledges that will be paid within one year. 

A business donated rent-free space for the organization that would typically rent for $48,000 per year.

Volunteers contributed $20,000 of time to help with mailing materials, answering phones, and other clerical functions.

1. Salaries and fringe benefits of $224,600 were paid during the year, and an additional $14,200 of salaries and fringe benefits were accrued.
2. The Symphony incurred the following expenses during the year:  Utilities – $4,700; Supplies – $5,250; and telephone $9,600.  There were no supplies at the end of the year and accounts payable of $3,400 remained on the books.
3. Required:
4. Prepare journal entries to record the transactions in an Excel spreadsheet.  Label each entry clearly and use Excel formulas for all calculated numbers.
5. Part B:

What criteria must be met before a not-for-profit organization can record donated services?  If the criteria are met, how should donated services be recorded?  Give examples to support your answer.