(Expenditures Vs Expenses) Family Services, a small social service nonprofit agency, began operation on January 1, 20X1, with $40,000 cash and $150,000 woth of equipment, on which $60,000 was owed on a note to City Bank. The equipment was expected to have a remaining useful life of 15 years with so nalbage value. During its first year of operations, ending December 31, 20X1, Family Services paid or accrued the following:
(1) Salaries and other personnel costs, $100,000.
(2) Rent and utilities, $24,000.
(3) Debt services - interest, $5,500, and payment on long-term note principal, $10,000.
(4) Capital outlay - aditional equipment purchased Hanuary 3, $30,000, expected to last 6 years and have a $6,000 salvage value.
(5) Other current operating items paid with cash, $4,500.
There were no prepayals or unrecorded accruals at December 31, 20X1, and no additional debt was incurred during the year.
Compute for the Family Services agency, for the year ended December 31, 20X1, its total (a) expenses and (b) expenditures
Step by step solution has been provided for each of the above questions. All calculations are clearly shown in the solution.