Prepare the general journal entries needed to record the following transactions and events in the general ledger accounts of the Valdes Helping Hand Institute, a nongovernment VHWO:

1. Contributions were received as follows:

Experience indicates that 10% of the pledges will prove uncollectible.
2. A building addition was completed at a cost of $1,500,000. The $600,000 received in item 1 was paid the contractor, and the balance is owed on a 5-year, 12% note.
3. Expenditures, all paid, were made as follows:

4. Equipment costing $300,000 was purchased from unrestricted resources.
5. An older piece of equipment—original cost $100,000; accumulated depreciation $65,000—was sold for $40,000. The cash received was unrestricted.
6. A lot and building, estimated fair market value $850,000, were donated to the institute on the condition that they be sold and the proceeds used for Program D, which serves physically and mentally handicapped babies and children.
7. The lot and building (6) sold immediately for $850,000.
8. Investment earnings were accrued and received as follows:

9. A fund-raising bazaar and banquet were held. All $300,000 of gross receipts were unrestricted. Costs incurred—including food, gifts, kitchen help, and waiters—totaled $60,000. Costs would have been higher, but the hotel waived its normal charge ($10,000) and a local supermarket donated food and other merchandise valued at $7,500.
10. To ensure that the babies, young children, and elderly clients are receiving proper medical attention, a local doctor gives each a thorough physical examination annually. He refuses to accept payment for his services, conservatively valued at $30,000. Similarly, a clinical psychologist ensures that each client is properly tested (e.g., intelligence, aptitudes, and progress) on a timely basis. His time would be conservatively valued at $15,000 if he accepted payment. Both the doctor and the psychologist have assigned duties, keep regular hours, maintain case records on each child, and call to the attention of institute staff members each child’s status, potential, and psychological or medical needs. Both spend their time approximately 30% on Program A clients, 20% on Program B clients, and 25% each on Program C and D clients.
11. The family that donated the lot and building (in item 6) also donated land and a small building adjacent to the institute offices for use as an infant nursery and playground. The land and building are conservatively appraised at:
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$100,000
Building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,000
  $350,000
However, there is a 6%, $50,000 mortgage note payable on the building, which the instituteassumed.

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a. Cash S 700,000 600,000 200,000 500,000 $2,000,000 for general operations for building addition for aid to the elderly as an endowment-income restricted for aid to handicapped b. Pledges: 750,000 for aid to the handicapped 950,000 150,000 $1,850,000 for building additions for general operations in future years From Unrestricted Resources For: Amount S 100,000 80,000 320,000 S 500,000 General and Administrative .. Aid to Children (Program A) .. Fromt Amount Aid to Elderly (Program B) Aid to Handicapped (Program C) 1/ 10 of the note principal .- . Six months intetest on note S 200,000 400,000 90,000 54,000 450,000 S1,194,000 Earmings on unrestricted investments Restricted earnings on program-restricted investments Restricted earnings on endowment investments S 40,000 accrued 60,000 accrued 65,000 cash 35,000 cash Restricted to Aid to Handicapped Unrestricted earnings on investments restricted for plant purposes $200,000