(Journal entries for a VHWO)

Youth Services Agency (YSA) is a VHWO that provides counseling and recreation programs for youthful offenders. YSA'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. YSA does not use fund accounting, but does identify all revenues by net asset class. The following transactions occurred during 2004:

1. YSA received pledges of gifts in the amount of $\$ 20,000$, to be used as the YSA trustees consider appropriate. Based on previous experience, YSA's CEO believed that 90 percent of the pledges would be collected.

2. YSA collected $\$ 17,000$ cash on the pledges received in transaction (1). It also wrote off $\$ 1,500$ of the pledges as uncollectible.

3. YSA received a gift of 50 shares of General Electric stock that had a fair value of $\$ 1,300$ at the time of the gift. The donor sent the CEO a letter with the gift, saying that proceeds of the stock should be used only to purchase athletic equipment for the basketball team.

4. YSA realized $\$ 1,400$ in cash from the sale of the stock received in transaction (3).

5. YSA paid $\$ 800$ cash for athletic equipment, using the proceeds received in transaction (4). The expense was charged to Recreation programs.

6. YSA spent $\$ 12,000$ cash on the following:

7. YSA billed the county $\$ 6,500$ for costs incurred under its contract.

Required: Prepare journal entries to record these transactions. Identify all revenues within the journal entries as unrestricted, temporarily restricted, or permanently restricted.

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Counseling programs Recreation programs Administration expense Total $ 8,000 3,000 1,000 $12,000