Savior is a not for profit organization formed on January 1

2013 #94
Savior is a not-for-profit organization formed on January 1, 2013. It is committed to helping
children who are in danger due to family abuse situations. The organization is funded by the
provincial government and private donations. Savior is in touch with all the local schools and
community centers. It is also involved in referring families to the various agencies and in
creating awareness of problems that exist. During 2013, the following transactions occurred:1.
Savior was awarded a grant of $50,000 from the provincial government. Of that, $10,000 was
provided for the rent of office space. The remaining $40,000 is given to fund operations for the
year. An installment of $25,000 was received immediately and the other half will be received on
January 1, 2014. In order to receive the second installment, Savior must show payroll receipts
of at least $10,000 by November 30, 2013.2. Savior bought a photocopy machine for $3,000.
The machine's actual fair value is $5,000 but the office machine company owner sold it for a
lower amount since he is committed to the cause. The machine is expected to have a two-year
life.3. Savior paid salaries of $15,000 for office personnel during the year, $10,000 for a part-
time fundraiser hired to raise funds for endowments and yearly operations, and $5,000 for the
part-time director.4. Savior paid $2,000 to train volunteers to work with at-risk children.5. Savior
held a bake sale at the end of August specifically for a project to create an after-school
program. It incurred costs of $500 and raised $8,000 in donations.6. The fundraiser secured a
major endowment of $50,000 on September 1, 2013. The interest on the endowment can be
used at Savior's discretion. The funds were invested in government bonds. The bonds pay an
annual inter est of 3%.7. Savior does not use fund accounting.Required(a) Prepare the journal
entries that Savior would make in 2013.(b) Prepare the financial statements for Savior as at
December 31, 2013.View Solution:
Savior is a not for profit organization formed on January 1 2013

ANSWER
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