ACCOUNTING FOR GOVERNMENTAL AND NONPROFIT ORGANIZATIONS

A VHWO had the following transactions affecting its operations for the year. (a) | The organization received unrestricted pledges for $520,000. Ofthis amount, $500,000 is expected to be collected. (b) An individual gave the organization securities with a fair market value of S1 million. The gift provided that the principal must remain intact while the income may be spent for any purpose the board of trustees approves. received in cash. These contributions totaled $73,000. $85,000 and were paid in cash during the year. (c) Unrestricted contributions that were designated by donors for use in the following year were (d) Salaries of employees involved in performing services for the organization amounted to For each of the above transactions, indicate which net asset classification(s) would be affected by the transaction. For each of the above transactions, prepare the general journal entry, in proper form, to record the transaction. Omit explanations. Use the letter of the entry as the date. REQUIRED: (1) (2)