Author Question: A nongovernment, not-for-profit organization received donated services from a local volunteer. The ... (Read 41 times)

Starlight · **on:** Jul 5, 2018

A nongovernment, not-for-profit organization received donated services from a local volunteer. The volunteer works as a receptionist for the organization. The market value of service is 5,000 .

How should this activity be reported be in the statement of activities?
a. Not be reported
b. Unrestricted support - 5,000
c. Restricted support - 5,000
d. Both unrestricted support and program expense - 5,000

Question 2

At year-end, the balance in the prepaid insurance account, prior to any adjustments, is 6,000 . The amount of the journal entry required to record insurance expense will be 4,000 if the amount of unexpired insurance applicable to future periods is 2,000.
a. True
b. False

Indicate whether the statement is true or false