Spark organization:
Spark was incorporated as a no profit voluntary health and welfare organization on Jan 1 2015. During the fiscal year ended December 31, 2015 the following transactions occurred:
1. A business donated rent-free office space to the organization that would normally rent for 16,00 a year.
2. A fund drive raised 120,00 in cash. A state government grant of 50,000 was received for program costs.
3. An administrator was gired to administer the program services and support services of the organization. The administrator was paid 92,000 for the year which included fringe benefits. Part time clerical help was paid 26,000 for the year. At year-end 18,000 of the slaries and wages remained unpaid.
4. Pledges of 100,000 were received for construction on a new building. Teh pledges are payable over the following five fiscal years. teh discounted value of the 80,000 in plesdes expected to be received in years 2016-2019 is 73,400.
5. Office equipment was purchased for 5,000 the useful life of the equipment is estimated to be five years. Office furniture with a fair value of 7,600 was donated by a local office supply company. The furniture has an estimated useful life of 10 years. Furniture and equipment are considered unrestricted net assets by SOLVE.
6. Telephone and expense for the years was 5,600 printing and postage expense was 10,000 for the year, and supplies expense was 2,100 for the year. at year-end an immaterial amount fo supplies remained on hand and the balance in accounts payable was 3,800.
7. Volunteers contributed 15,000 of time to help with answering the phones, mailing materials, and various other clerical activities.
8. It is estimated that all of the pledges made for the 2015 year will be collected. Depreciation expense is recorded for the full year on the assets recorded in item 5.
9. Expenses were allocated in the following percentages: public health education 35% community service 25% management and general 20% and fundraising 20%
10. Net assets were released to reflect satisfaction of state grant requirements that the grant resources be used for program purposes.
11. All nominal accounts were closed to the appropriate net asset accounts.
Required:
a. Make all necessary journal entries to record these transactions. Expense transactions should be initially recorded by object classification; in entry 10 expenses will be allocated to function’s
b. Prepare a statement of activities for the year ended dec 31
c. prepare a statement of financial position for the year ended dec 31
d. prepare a statement of cash flows for the year ended dec 31
e. prepare a statement of functional expenses for the year ended dec 31