Columbus Youth Agency (CYA) is a voluntary health and welfare organization that provides counseling and recreation programs for youthful offenders and delinquents.

 

Columbus Youth Agency (CYA) is a voluntary health and welfare organization that provides counseling and recreation programs for youthful offenders and delinquents. CYA's programs are financed through a contract with the county in which it is located and through contributions from local citizens. Its contract with the county provides for reimbursement of allowable costs based on monthly billings to the county. CYA uses the accrual basis of accounting, and the following transactions occurred during 2021: (A) CYA received cash in the amount of $25,000, to be used as the CYA board of directors considers appropriate. (B) CYA received a gift of Intel stock that had a fair market value of $1,300 total at the time of the gift. The donor sent CYA's president a letter with the gift, saying that proceeds of the stock should be used only to purchase athletic equipment for the basketball team. CYA sold the stock upon receipt. (C)CYA paid $800 cash for athletic equipment, using some of the proceeds received in Transaction 2. The expense was charged to the Recreation programs account. (D) CYA spent $12,000 cash on the following: $8,000 for counseling programs, $3,000 for recreation programs, and $1,000 for administration. (E) CYA billed the county $6,500 for costs incurred under its contract. (F) A licensed social worker in the area donated 100 hours of her time to CYA. Her normal hourly rate is $50 per hour. The CEO appreciates the donation because otherwise he would have to purchase the counseling services. (G) CYA borrowed $10,000 from the local bank on an unsecured note. The whole amount will be repaid next year. (H) CYA paid the local bank $1,600, of which $400 was interest. (I) CYA recorded $300 of depreciation for the year. (J) CYA prepaid next year's rent of $12,000. (K) CYA determined that it will not be able to collect $2,500 of pledges. 

 

 

 

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