INVOLVE was incorporated as a not-for-profit voluntary health and welfare organization on January 1, 2020. During the fiscal year ended December 31, 2020, the following transactions occurred. 1. A business donated rent-free office space to the organization that would normally rent for $35,300 a year. 2. A fund drive raised $186,500 in cash and $103,000 in pledges that will be paid within one year. A state government grant of $153,000 was received for program operating costs related to public health education. 3. Salaries and fringe benefits paid during the year amounted to $208,860. At year-end, an additional $16,300 of salaries and fringe benefits were accrued. 4. A donor pledged $103,000 for construction of a new building, payable over five fiscal years, commencing in 2022. The discounted value of the pledge is expected to be $94,560. 5. Office equipment was purchased for $12,300. The useful life of the equipment is estimated to be four years. Office furniture with a fair value of $9,900 was donated by a local office supply company. The furniture has an estimated useful life of 10 years. Furniture and equipment are considered net assets without donor restrictions by INVOLVE. 6. Telephone expense for the year was $5500, printing and postage expense was $12,300 for the year, utilities for the year were $8600 and supplies expense was $4,600 for the year. At year-end, an immaterial amount of supplies remained on hand and the balance in accounts payable was $3,900. 7. Volunteers contributed $15,300 of time to help with answering the phones, mailing materials, and various other clerical activities. 8. It is estimated that 80 percent of the pledges made for the 2021 year will be collected. Depreciation expense is recorded for the full year on the assets recorded in item 5. 9. All expenses were allocated to program services and support services in the following percentages: public health education, 40 percent; community service, 20 percent; management and general, 20 percent; and fund-raising, 20 percent. 10. Net assets were released to reflect satisfaction of state grant requirements that the grant resources be used for public health education program purposes. 11. All nominal accounts were closed to the appropriate net asset accounts. Required information Transaction No General Journal Debit Credit A Rent Expense 01 35,300O Contributions-Without Donor Restrictions 35,300 Cash Contributions Receivable B 02 339,500O 103,000O Contributions-With Donor Restrictions-Program 256,000 Contributions-Without Donor Restrictions 186,500 03 Salaries and Benefits Expense 225, 160 Cash 208,860 Salaries and Benefits Payable 16.300 D 04 Contributions Receivable 103,000 Contributions-Wth Donor Restrictions-Time 94,560 O Discount on Contributions Receivable 8.440 E 05 Equipment and Fumiture 22,200O Cash 12.300 O Contributions-Without Donor Restrictions 9.900 Telephone Expense Printing and Postage Expense Ublities Expense 5,500O 12,300 F 06 8,600 Supplies Expense 4,600 Cash 27,100 Accounts Payable 3,900 07 No Journal Entry Required ( Prev 3 of 4 Ne MAY 19 Check my work mode : This shows what is correct or incorrect for the work y Required information Utilities Expense 8,600 Supplies Expense 4,600 Cash 27,100 Accounts Payable 3,900 07 No Journal Entry Required 8(a) Provision for Uncollectible Pledges 20,600 Allowance for Uncollectible Pledges-Unrestricted 20,600 8(b) Depreciation Expense 4,065 Allowance for Depreciation-Equipment and Furniture 4,065 103,694 X 51,847X 51.847 51,8478 09 Public Health Education Program Community Service Program Management and General Fund-Raising Salaries and Benefits Expense 225, 160 Rent Expense Telephone Expense 5,500 Printing and Postage Expense 12,300 Utilities Expense 8,600 Supplies Expense 4,600 Depreciation Expense 3.075 X K 10 Public Health Education Program < Prev 3 of 4 MAY 19 INVOLVE was incorporated as a not-for-profit voluntary health and welfare organization on January 1, 2020. During the fiscal year ended December 31, 2020, the following transactions occurred. 1. A business donated rent-free office space to the organization that would normally rent for $35,300 a year. 2. A fund drive raised $186,500 in cash and $103,000 in pledges that will be paid within one year. A state government grant of $153,000 was received for program operating costs related to public health education. 3. Salaries and fringe benefits paid during the year amounted to $208,860. At year-end, an additional $16,300 of salaries and fringe benefits were accrued. 4. A donor pledged $103,000 for construction of a new building, payable over five fiscal years, commencing in 2022. The discounted value of the pledge is expected to be $94,560. 5. Office equipment was purchased for $12,300. The useful life of the equipment is estimated to be four years. Office furniture with a fair value of $9,900 was donated by a local office supply company. The furniture has an estimated useful life of 10 years. Furniture and equipment are considered net assets without donor restrictions by INVOLVE. 6. Telephone expense for the year was $5500, printing and postage expense was $12,300 for the year, utilities for the year were $8600 and supplies expense was $4,600 for the year. At year-end, an immaterial amount of supplies remained on hand and the balance in accounts payable was $3,900. 7. Volunteers contributed $15,300 of time to help with answering the phones, mailing materials, and various other clerical activities. 8. It is estimated that 80 percent of the pledges made for the 2021 year will be collected. Depreciation expense is recorded for the full year on the assets recorded in item 5. 9. All expenses were allocated to program services and support services in the following percentages: public health education, 40 percent; community service, 20 percent; management and general, 20 percent; and fund-raising, 20 percent. 10. Net assets were released to reflect satisfaction of state grant requirements that the grant resources be used for public health education program purposes. 11. All nominal accounts were closed to the appropriate net asset accounts. Required information Transaction No General Journal Debit Credit A Rent Expense 01 35,300O Contributions-Without Donor Restrictions 35,300 Cash Contributions Receivable B 02 339,500O 103,000O Contributions-With Donor Restrictions-Program 256,000 Contributions-Without Donor Restrictions 186,500 03 Salaries and Benefits Expense 225, 160 Cash 208,860 Salaries and Benefits Payable 16.300 D 04 Contributions Receivable 103,000 Contributions-Wth Donor Restrictions-Time 94,560 O Discount on Contributions Receivable 8.440 E 05 Equipment and Fumiture 22,200O Cash 12.300 O Contributions-Without Donor Restrictions 9.900 Telephone Expense Printing and Postage Expense Ublities Expense 5,500O 12,300 F 06 8,600 Supplies Expense 4,600 Cash 27,100 Accounts Payable 3,900 07 No Journal Entry Required ( Prev 3 of 4 Ne MAY 19 Check my work mode : This shows what is correct or incorrect for the work y Required information Utilities Expense 8,600 Supplies Expense 4,600 Cash 27,100 Accounts Payable 3,900 07 No Journal Entry Required 8(a) Provision for Uncollectible Pledges 20,600 Allowance for Uncollectible Pledges-Unrestricted 20,600 8(b) Depreciation Expense 4,065 Allowance for Depreciation-Equipment and Furniture 4,065 103,694 X 51,847X 51.847 51,8478 09 Public Health Education Program Community Service Program Management and General Fund-Raising Salaries and Benefits Expense 225, 160 Rent Expense Telephone Expense 5,500 Printing and Postage Expense 12,300 Utilities Expense 8,600 Supplies Expense 4,600 Depreciation Expense 3.075 X K 10 Public Health Education Program < Prev 3 of 4 MAY 19