Quiz 1

Food for the Golden Years is a private, not-for-profit organization

that provides free meals for the post-65 age group in the suburbs of a
large city. Record the following transactions in the accounts of Food
for the Golden Years. The following transactions affected the accounts
of Food for the Golden Years.

1. Unrestricted cash gifts that were received last year, but designated
for use in the current year, totaled $20,000.
2. Unrestricted pledges of $40,000 were received. Five percent of the
pledges typically prove uncollectible. Additional cash contributions
during the year totaled $25,000.
3. Donations of food totaled $100,000. The inventory of food on hand
decreased by $1,500 during the year.
4. The following expenses were incurred: Salary of director, $15,000;
facility rental for the meals program, $2,500; and purchases of
food, $45,000.
5. Pledges of $250,000 were received during the year. The pledges were
restricted for use in purchasing new delivery vans. All of these
pledges are expected to be collected in the next fiscal year.
1. Temporarily restricted net assets -
reclassifications out ............ 20,000
Unrestricted net assets -
reclassifications in .............. 20,000

2. Pledges receivable ...................... 40,000

Cash ................................. 25,000
Allowance for uncollectible pledges .. 2,000
Unrestricted support - contributions . 63,000

3. Expenses - meals program - supplies ..... 101,500

Inventory of supplies ............... 1,500
Unrestricted contributions -
donated supplies ................. 100,000

4. Expenses - management and general ....... 15,000

Expenses - meals program - supplies ..... 45,000
Expenses - meals program - rental ....... 2,500
Cash ................................. 62,500

5. Pledges receivable ...................... 250,000

Temporarily restricted support -
contributions .................... 250,000

Unrestricted Net Assets, Beg 50,000.00

Reclassification 20,000.00
Support Contributions 63,000.00
Donated Supplies 100,000.00
Expenses - 101,500.00
Expenses - 15,000.00
Expenses - 45,000.00
Expenses - 2,500.00
Unrestricted Net Assets, End 69,000.00

Temporarily Restricted Net Assets, Beg 60,000.00

Reclassification - 20,000.00
Support Contributions 250,000.00
Temporarily Restricted Net Assets, End 290,000.00

Permanently Restricted Net Assets, Beg 100,000.00

Permanently Restricted Net Assets, End 100,000.00