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

Net Assets:

Unrestricted, $600,000

Temporarily Restricted, $ 90,000

Permanently Restricted, $200,000

During the year a number of transactions occurred. Make up an answer sheet with these headings:

Unrestricted Net Temporarily Restricted Permanently Restricted

Item Assets Net Assets Net Assets

Using your answer sheet, show how each of the following transactions would affect the organization's Net Assets balances. Show any reclassifications separately. 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.

4. A donor gives $3,000 to the charity that must be conveyed to another not-for-profit when the Board of directors decides which other organization should get the money.

5. Membership dues are received in the amount of $5,000.

6. Unrestricted contributions (pledges) of $350,000, to be collected in cash in thirty days, before the end of the year, are received.

7. Interest of $60 and principal of $100 is paid on the note previously signed when the equipment was purchased.

8. A donor gives an investment worth $150,000 that must be kept invested forever, but any interest or dividends can be used for any legitimate purpose of the entity.

9. Salaries of $20,000 are paid with $5,000 of that amount coming from restricted funds

10. Investment income of $1,000 is generated from the investment received in item (8) above.