F8 - NFP Revenue Recognition Flashcards
Super Seniors is a not-for-profit organization that provides services to senior citizens. Super employs a full-time staff of 10 people at an annual cost of $150,000. In addition, two volunteers work as part-time secretaries replacing last year’s full-time secretary who earned $10,000. Services performed by other volunteers for special events had an estimated value of $15,000. These volunteers were employees of local businesses and they received small-value items for their participation. What amount should Super report for salary and wage expenses related to the above items?
$160,000
$150,000 paid staff + $10,000 donated services = $160,000
The $15,000 is not included because it is from special events volunteers whose services do not appear to qualify as either requiring specialized skills or being mandatory.
