Answer:
United Ways
Statement of Activities for the year ended December 31, 20X3:
Without Donor Restrictions
January 1, 20X3 balance $ 3,013.888
Cash from donations 519,000
Computer acquisition (230,000)
Transfer from restricted 119,000
Equipment acquisition (119,000)
Program and supporting services expenses:
Fund-Raising ($250,888)
Public health education (150,100)
Community services (125,900)
Management and general (114,300)
December 31, 20X3 balance $2,661,700 2,661,700
With Donor Restrictions
January 1, 20X3 balance $1,119,688
Earned Investment Income 206,000
Research (152,000)
Transfer to unrestricted (119,000)
Other Research Expenses (39,888)
December 31, 20X3 balance $1,014,800 1,014,800
Donated audit services 16,300
Audit Cost (16,300) 0
Total Change in net assets $3,676,500
Explanation:
a) Data and Calculations:
Balances in net assets at January 1, 20X3:
Without Donor Restrictions
January 1, 20X3 balance $ 3,013.888
Cash from donations 519,000
Computer acquisition (230,000)
Transfer from restricted 119,000
Equipment acquisition (119,000)
Program and supporting services expenses:
Fund-Raising ($250,888)
Public health education (150,100)
Community services (125,900)
Management and general (114,300)
December 31, 20X3 balance $2,661,700
Donated audit services 16,300
With Donor Restrictions
January 1, 20X3 balance $1,119,688
Earned Investment Income 206,000
Research (152,000)
Transfer to unrestricted (119,000)
Other Research Expenses (39,888)
December 31, 20X3 balance $1,014,800
b) United Ways is not a profit-making organization. It is guided by its missions. Therefore, the terms “statement of activities” and “change in net assets” are used instead of “income statement” and “net income.”
