A private not for profit organization is working to create a

cure
A private not-for-profit organization is working to create a cure for a deadly disease. The
organization starts the year with cash of $700,000. Of this amount, unrestricted net assets total
$400,000, temporarily restricted net assets total $200,000, and permanently restricted net
assets total $100,000.Within the temporarily restricted net assets, the organization must use 80
percent for equipment and the rest for salaries. No implied time restriction has been designated
for the equipment when purchased. For the permanently restricted net assets, 70 percent of
resulting income must be used to cover the purchase of advertising for fund-raising purposes
and the rest is unrestricted. During the current year, the organization has the following
transactions:•Received unrestricted cash gifts of $210,000.•Paid salaries of $80,000 with
$20,000 of that amount coming from restricted funds. Of the total salaries, 40 percent is for
administrative personnel and the remainder is evenly divided among individuals working on
research to cure the designated disease and individuals employed for fundraising
purposes.•Bought equipment for $300,000 with a long-term note signed for $250,000 and
restricted funds used for the remainder. Of this equipment, 80 percent is used in research, 10
percent is used in administration, and the remainder is used for fund-raising.•Collected
membership dues of $30,000. The members receive a reasonable amount of value in exchange
for these dues including a monthly newsletter describing research activities.•Received $10,000
from a donor that must be conveyed to another organization doing work on a related
disease.•Received investment income of $13,000 generated by the permanently restricted net
assets. The donor has stipulated that 70 percent of the income is to be used for advertising, and
the remainder may be used at the organization’s discretion.•Paid advertising of
$2,000.•Received an unrestricted pledge of $100,000 that will be collected in three years. The
organization expects to collect the entire amount. The pledge has a present value of $78,000
and related interest (additional contribution revenue) of $3,000 in the year.•Computed
depreciation on the equipment acquired as $20,000.•Spent $93,000 on research supplies that it
utilized during the year.•Owed salaries of $5,000 at the end of the year. Half of this amount is
for individuals doing fundraising and half for individuals doing research.•Received a donated
painting that qualifies as a museum piece. It has a value of $800,000. Officials do not want to
record this gift if possible.(a) Prepare a statement of activities for this organization for this
year.(b) Prepare a statement of financial position for this organization for this year.View
Solution: A private not for profit organization is working to create a cure
SOLUTION-- http://solutiondone.online/downloads/a-private-not-for-profit-organization-is-
working-to-create-a-cure/

Unlock answers here solutiondone.online