Question

Prepare a statement of activities for the year ended June 30, 2023. (Amounts to be deducted should be indicated with a minus sign.)

Answer 1

The question pertains to the preparation of a statement of activities, which is pertinent to nonprofit organization financial accounting in the business field. The statement outlines the organization's revenues, expenses, and net assets changes over a specific period.

Step-by-step explanation:

The subject of this question is Business, specifically dealing with financial accounting. Preparing a statement of activities is relevant to the field of nonprofit accounting, which is a part of the broader business curriculum in college. The statement of activities is similar to an income statement used by for-profit entities but tailored for nonprofit organizations, showing their revenues, expenses, and changes in net assets for a particular period.

To prepare a statement of activities for the year ended June 30, 2023, one would need to summarize the organization's revenues, expenses, gains, and losses for that year. Revenues might include contributions, grants, service fees, and investment income. Expenses would encompass costs related to programs, administration, and fundraising. Revenues minus expenses result in the change in net assets for the year. Remember, negative amounts should be indicated with a minus sign to show net expenses or losses.

Here is a simplified step-by-step explanation:

1. List all revenues and gains, detailing each source.
2. List all expenses and losses, detailing each category.
3. Subtract the total expenses from the total revenues to calculate the change in net assets.
4. Present the final total showing the net assets at the beginning of the period, the changes during the period, and the net assets at the end of the period.