:A group of concerned citizens organized a voluntary health and welfare organization called Neighbors Helping Society (NHS). Below is the statement of financial position as of December 31, 2017.

NEIGHBORS HELPING SOCIETY (A VHWO)
STATEMENTS OF FINANCIAL POSITION
31-Dec-2017
Assets		Liabilities and Net Assets
Cash and cash equivalents	14,000	Liabilities
Inventories	1,600	Accounts payable	2,300
Contributions receivable (less allowance of $300		Grants payable	1,550
in 2018 and $100 in 2017)	400	Mortgage payable	3,000
Short-term investments	1,000	Interest payable	50
Land, buildings, and equipment		Total liabilities	6,900
(less accumulated depreciation of $16,500		Net assets
in 2018 and $8,000 in 2017)	37,000	Unrestricted	18,400
Assets restricted for endowment	5,000	Temporarily restricted	28,700
Total assets	59,000	Permanently restricted	5,000
		Total net assets	52,100
		Total liabilities and net assets	59,000

The following journal entries provide examples of some typical accounting procedures for this organization in 2018.

1. CONTRIBUTIONS: As part of its fund-raising effort in 2018, NHS distributed decals to all residents in the community. The decals cost NHS $145. As a result of the campaign, the organization received unrestricted cash contributions of $4,000 and unconditional promises to give totaling $6,000. Of this $6,000 contribution receivable, $2,000 is not collectible until 2019. NHS estimates that 10% of the pledges will be uncollectible. NHS collected $3,600 of the contributions receivable due in 2018 and wrote off the remaining $400 as uncollectible.

A donor gives NHS $1,000 that is restricted for a playground project. NHS purchases supplies for the playground project for $900.

2. DONATED LONG-LIVED ASSETS: On January 1, 2018, Martin Construction donated a used van to the organization. The fair value of the van is $1,500, and it has a three-year remaining useful life. The van will be used in the organization's community service program.

3. SPECIAL EVENT FUND-RAISERS: A fund-raising event for NHS featured a dinner and dance. Ticket sales for the dinner totaled $950, and expenses of the fund-raiser amounted to $650.

4. GIFTS IN KIND: NHS receives donations of used housewares and furniture that are then sold at a rummage sale held in August. Proceeds from the sale (net) are $6,045. Office-Mate Company donates office supplies with a fair value of $390 to NHS. Office-Mate puts no restrictions on the use of the donated items.

5. MEMBERSHIP FEES: NHS offers regular memberships for $10 and sustaining memberships for $50 and over. All members are entitled to the same newsletter and local discount coupons that are distributed when the dues are received. NHS received 500 regular memberships ($5,000) and 130 sustaining memberships ($6,500).

6. DONATED SECURITIES AND INVESTMENT INCOME: NHS receives securities (fair value of $5,000) with a stipulation that they permanently endow a park enhancement project. Income earned on the securities is restricted to use for the park enhancement project. Dividend income is $475.

7. SUPPLIES: NHS had supplies on hand of $1,600 at January 1, 2018. The organization purchased supplies for $1,500 during the year and received donations of supplies that had a fair value of $2,050 in addition to the $390 already received. At the end of 2018, the inventory on hand was $750. The supplies used were allocated to recreation programs, $2,000; community service programs, $1,400; fund-raising expenses, $600; and general administration, $790.

8. DONATED SERVICES AND PAYMENT OF SALARIES: An accounting firm donated its services to audit the books of NHS. The audit would have cost the association $1,200 if the services had not been donated. NHS also paid salaries allocated to program services and administration as follows: recreation programs, $6,000; community services, $4,000; and management and general, $2,000.

9. DEPRECIATION: NHSs equipment owned has been recorded as an unrestricted asset. The organization allocates the $8,000 depreciation expense on the equipment to its programs and general administration as follows: $3,000 to recreation program, $4,000 to community service, and $1,000 to management and general.

10. FIXED ASSET PURCHASE WITH RESTRICTED RESOURCES: NHS purchased equipment costing $4,000. The equipment was financed by $3,000 from contributions with donor-imposed restrictions that were accumulated for purchase of the equipment and $1,000 from general resources.

Required: 1. Prepare entries, in general journal form, to record the transactions for 2018. 2. Prepare the necessary closing entries for 2018.