At the beginning of the year, Nutrition Now, a health and welfare not-for-profit entity, had the following Net Assets balances:

Net Assets:

without donor restriction $980,000

with donor restriction $ 320000

During the year a number of transactions occurred. using a 2- column schedule, show how each of the following transactions would effect the organizations two categories of Net Assets. Show any reclassifications necessary. So not net amounts together. Match your answers to the numbering below and provide a final total. Use parentheses to indicate subtractions.

1. Depreciation of $2,000 is recorded.

2. Equipment is bought for $25,000 by signing a long-term note for $10,000 and using temporarily restricted funds for the remainder.

3. An unrestricted contribution (pledge) of $60,000 is received that will be collected in three years. Present value is $48,000.