Question

The Maryville Cultural Center recently conducted a successful talent show in which local talent performed for a nominal prize. The talent show is an ongoing major event and is central to the center's mission. The event raised $4,800 in gross revenue. Expenses related to the event included $1,000 to rent an auditorium, $1,200 to advertise the event, $500 for trophies and other awards for the winner and the runners up, and $100 for printing and mailing tickets. The center believes there was no monetary value received by donors (attendees). To report this event in its statement of activities, the center will report

a) Gross revenue of $4,800 and expenses of $2,800.
b) Gross revenue of $4,800 and expenses of $2,900.
c) Gross revenue of $4,800 and expenses of $2,700.
d) Gross revenue of $4,800 and expenses of $3,200.

Answer 1

The Maryville Cultural Center incurred total expenses of $2,800 for its talent show. They will report a gross revenue of $4,800 and expenses of $2,800 in their statement of activities.

Step-by-step explanation:

To answer this question, we need to calculate the total expenses incurred by the Maryville Cultural Center during its successful talent show. Let's break down the expenses:

• Auditorium rental: $1,000
• Advertising: $1,200
• Trophies and awards: $500
• Mailing tickets and printing: $100

Now, let's add up these expenses to find the total:

$1,000 + $1,200 + $500 + $100 = $2,800

The gross revenue from the event was $4,800. Therefore, the correct way to report this event in the statement of activities would be to report a gross revenue of $4,800 and expenses of $2,800. This gives us the answer (a) Gross revenue of $4,800 and expenses of $2,800.