Rushmore Services is a private voluntary health and welfare organization that was established at the beginning of the current year to provide meals and temporary lodging for needy families. The following events occurred during its first year of operation:
a. $450,000 was received in federal grants. Of this amount, $350,000 was designated by the government for acquiring a facility and equipment. The rest was unrestricted.
b. In a fund-raising campaign, $125,000 was collected in cash. The funds are not restricted. Documented pledges of $15,000 are outstanding at year-end, assumed to be 100% collectible. These pledges are expected to be collected within the next two months.
c. A private foundation contributed securities valued at $300,000, with the stipulation that the securities be held intact. The income is unrestricted. Income earned on these investments during the year is $5,000, and the securities are worth $310,000 at year-end.
d. A building was purchased for $300,000, and equipment was purchased for $25,000, all financed by the federal grant.
e. Expenses for the year were as follows, paid in cash: $$\begin{array} { | l | r | }
\hline \text { Prog ram services } & \$ 339,000 \
\hline \text { Administrative services } & 16,000 \
\hline \text { Fund-raising } & 5,000 \
\hline \text { Total } & \$ 360,000 \
\hline
\end{array}$$ Expenses are displayed functionally on Rushmore's statement of activities.
f. Volunteers contributed services as follows:
Secretarial and administrative help (general services), requiring specialized skill, was donated by individuals skilled in those areas. Rushmore would have had to hire personnel to do the work if it was not donated. Market value of the services: $40,000. Volunteers helped in cleaning up the new facility and in advertising the programs to the community. No experience was necessary to provide these services. Market value of the services (at minimum wage): $6,000 for general services, and $14,000 for program services.
Required Prepare Rushmore Services' statement of activities for the current year.

Question

Rushmore Services is a private voluntary health and welfare organization that was established at the beginning of the current year to provide meals and temporary lodging for needy families. The following events occurred during its first year of operation:
a. $450,000 was received in federal grants. Of this amount, $350,000 was designated by the government for acquiring a facility and equipment. The rest was unrestricted.
b. In a fund-raising campaign, $125,000 was collected in cash. The funds are not restricted. Documented pledges of $15,000 are outstanding at year-end, assumed to be 100% collectible. These pledges are expected to be collected within the next two months.
c. A private foundation contributed securities valued at $300,000, with the stipulation that the securities be held intact. The income is unrestricted. Income earned on these investments during the year is $5,000, and the securities are worth $310,000 at year-end.
d. A building was purchased for $300,000, and equipment was purchased for $25,000, all financed by the federal grant.
e. Expenses for the year were as follows, paid in cash: $$\begin{array} { | l | r | } 
\hline \text { Prog ram services } & \$ 339,000 \
\hline \text { Administrative services } & 16,000 \
\hline \text { Fund-raising } & 5,000 \
\hline \text { Total } & \$ 360,000 \
\hline
\end{array}$$ Expenses are displayed functionally on Rushmore's statement of activities.
f. Volunteers contributed services as follows:
Secretarial and administrative help (general services), requiring specialized skill, was donated by individuals skilled in those areas. Rushmore would have had to hire personnel to do the work if it was not donated. Market value of the services: $40,000. Volunteers helped in cleaning up the new facility and in advertising the programs to the community. No experience was necessary to provide these services. Market value of the services (at minimum wage): $6,000 for general services, and $14,000 for program services.
Required Prepare Rushmore Services' statement of activities for the current year.

Quizplus · Accepted Answer

The Answer of Rushmore Services is a private voluntary health and welfare organization that was established at the beginning of the current year to provide meals and temporary lodging for needy families. The following events occurred during its first year of operation:
a. $450,000 was received in federal grants. Of this amount, $350,000 was designated by the government for acquiring a facility and equipment. The rest was unrestricted.
b. In a fund-raising campaign, $125,000 was collected in cash. The funds are not restricted. Documented pledges of $15,000 are outstanding at year-end, assumed to be 100% collectible. These pledges are expected to be collected within the next two months.
c. A private foundation contributed securities valued at $300,000, with the stipulation that the securities be held intact. The income is unrestricted. Income earned on these investments during the year is $5,000, and the securities are worth $310,000 at year-end.
d. A building was purchased for $300,000, and equipment was purchased for $25,000, all financed by the federal grant.
e. Expenses for the year were as follows, paid in cash: $$\begin{array} { | l | r | } 
\hline \text { Prog ram services } & \$ 339,000 \
\hline \text { Administrative services } & 16,000 \
\hline \text { Fund-raising } & 5,000 \
\hline \text { Total } & \$ 360,000 \
\hline
\end{array}$$ Expenses are displayed functionally on Rushmore's statement of activities.
f. Volunteers contributed services as follows:
Secretarial and administrative help (general services), requiring specialized skill, was donated by individuals skilled in those areas. Rushmore would have had to hire personnel to do the work if it was not donated. Market value of the services: $40,000. Volunteers helped in cleaning up the new facility and in advertising the programs to the community. No experience was necessary to provide these services. Market value of the services (at minimum wage): $6,000 for general services, and $14,000 for program services.
Required Prepare Rushmore Services' statement of activities for the current year.

Rushmore Services Is a Private Voluntary Health and Welfare Organization