Assignment: NFPO
Part 1: Submit your revisions from your last week's assignment, per your edits and faculty responses. In addition to the revisions, include the following:
Part 2: 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:
1) 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.
2) The VHWD received a gift of 1,000 shares of stock. The donor of the gift of shares stated that the money was to be used to buy musical instruments for the program.
• Fair value of the stock on the date of the gift was $15 per share.
• Sale of the stock yielded $17,000.
3) The VHWD purchased 2 violins at the cost of $2,000 each, 2 cellos for $3,000 each, and a small harp for $5,000 for the program, using the proceeds from the stock sale.
4) The VHWD billed the city for $5,000 of contracted costs.
5) The VHWD spent $10,000 on the following:
Music lessons $7,000
Instrument maintenance 2,000
Administrative expense 1,000
Total $10,000
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, plus 300-500 words.
Format your assignment according to the give formatting requirements:
• The answer must be using Times New Roman font (size 12), double spaced, typed, with one-inch margins on all sides.
• The response also includes a cover page containing the student's name, the title of the assignment, the course title, and the date. The cover page is not included in the required page length.
• Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.