Items 1 through 6 represent various transactions pertaining to Crest Haven, a voluntary health and welfare organizations, for the year ended December 31, 20X2. The information presented also includes a listing of how transactions could affect the statement of activities (List A effects) and the statement of cash flows (List B effects). Crest Haven follows both FASB 116 and 117.

\section*{Transactions}

1. Pledges of \(\$ 500,000\) were made by various donors for the acquisition of new equipment. The equipment will be acquired in \(20 \times 3\).

2. Dividends and interest of \(\$ 40,000\) were received from endowment investments. The donors have stipulated that the earnings from endowment investments be used for research in \(20 \times 3\).

3. Cash donations of \(\$ 350,000\) were received from donors who did not stipulate how the donations were to be used.

4. Investments of \(\$ 250,000\) were acquired from cash donated in \(20 \mathrm{X} 0\) by a donor who stipulated that the cash donation be invested permanently.

5. Depreciation expense of \(\$ 75.000\) was recorded for \(20 \times 2\).

6. Receipt of \(\$ 300,000\) of the amount pledged in transaction 1 above.

\section*{Required}

Indicate how each transaction should be reported by Crest Haven on (1) the statement of activities and (2) the statement of cash flows prepared for the year ended December 31, 20X2. Crest Haven reports separate columns for changes in unrestricted, temporarily restricted, and permanently restricted net assets on its statement of activities. In addition, Crest Haven uses the direct method of reporting its cash flows from operation activities. List A effects, or List B effects, may be used once, more than once, or not at all.

\section*{Example}

Cash paid to employees and suppliers: \(\quad\) List \(\mathrm{A}=\mathrm{D} \quad\) List \(\mathrm{B}=\mathrm{I}\)

Statement of Activities List A Effects A. Increases unrestricted net assets B. Increases temporarily restricted net assets C. Increases permanently restricted net assets D. Decreases unrestricted net assets E. Decreases temporarily restricted net assets F. Decreases permanently restricted net assets G. Transaction not reported on the statement of activities Statement of Cash Flows List B Effects H. Increases cash flows from operating activities I. Decreases cash flows from operating activities J. Increases cash flows from investing activities K. Decreases cash flows from investing activities L. Increases cash flows from financing activities M. Decreases cash flows from financing activities N. Transaction not reported on the statement of cash flows