Daisy’s Home is a shelter for abandoned golden doodle dogs. The shelter cares for the golden doodles until adoption is secured. The non profit is in its first year of existence. Prepare the journal entries for the following transactions.
1. A fund drive raised $105,000 in cash without any donor stipulations.
2. Canine enthusiast, Ms. Dashund, established a $500,000 endowment with investments requiring the corpus value be maintained until 500,000 golden doodles have been placed into adoptive homes and designating earnings to be used for the operation of the non profit.
3. An administrator was hired to oversee all operations for an annual salary of $35,000. (Ignore payroll taxes and benefits.) 20% of the administrator’s time is spent on bookkeeping and other organization-sustaining tasks. 20% of her time is spent on developing donor relationships. The remaining 60% of the time is spent working in the shelter.
4. A local horse farm donated barn space to house the shelter. Daisy’s Home had expected to pay $15,000 per year for space.
5. The local government awarded a $50,000 grant to renovate the barn and fit the shelter with equipment. The NFP does not have a time restriction policy on donated assets. Daisy’s Home spent $63,000 on the renovation and equipment. (Ignore depreciation.)
6. A team of fourteen volunteers was organized for the shelter operations. Two volunteers work ten hours each day Monday through Saturday. Daisy’s Home would pay minimum wage to daily workers if they were not volunteers. (Ignore payroll taxes and benefits.)
7. A night and weekend caretaker was hired for $18,000 per year. (Ignore payroll taxes and benefits.)
8. Veterinary services were $24,000 for the year. Food and supplies were $13,000 for the year.
9. A local school hosted a “dog wash” fundraiser to benefit Daisy’s Home. The event raised $6,500 but had $2,100 in costs.
10. Daisy’s Home generated $7,200 in adoption fees in the first year. 36 golden doodles were adopted.
11. PetSmart will provide $20,000 in food and supplies if Daisy’s Home places 200 golden doodles in adoptive homes by July of next year.
12. Ms. Dashund’s sister, Mrs. Spaniel, gifted $300,000 to be maintained in perpetuity and the earnings used to train and groom the resident doodles. The gift was immediately invested in a variety of stocks and bonds.
13. At the end of the year the Dashund endowment had earned $10,000 and had a market value of $523,000. The Spaniel endowment earned $2,000 and had a market value of $313,000.