CLASS EXERCISE 6.1. RECORDING AND CATEGORIZING TRANSACTIONS Use the spreadsheet shown in Table 6.4 to list the following February transactions for the Access to Learning nonprofit organization: On February 1, the nonprofit paid $20,000 in salaries. 166 On February 2, the nonprofit used $5,000 in cash to pay down its accounts payable by that amount. On February 5, the nonprofit received $5,000 in cash from a foundation, and that donation had previously been recorded in accounts receivable. On February 10, the executive director talked to a foundation program officer who said that the foundation would be giving a $25,000 grant to the nonprofit within the next two months. On February 15, the nonprofit incurred another $1,000 in salaries payable. On February 20, the nonprofit received $5,000 in cash from pledges. On February 22, the nonprofit received a second payment of $10,000 from the $50,000 foundation grant. On February 23, the nonprofit conducted the workshops for $10,000 that was paid in January, and the payment had been recorded as deferred revenue. On February 24, the nonprofit made a mortgage payment of $5,000 plus $500 in mortgage interest. On February 25, the nonprofit bought $500 worth of books with cash.

ASSIGNMENTS ASSIGNMENT 6.1. RECORDING TRANSACTIONS Complete the March transactions for the Access to Learning Nonprofit Organization: On March 1, the nonprofit paid $20,000 in salaries. On March 5, the nonprofit charged $10,000 worth of supplies. On March 7, a foundation program officer told the executive director that the nonprofit would receive a $25,000 grant from a foundation. On March 10, the nonprofit received the third payment of $10,000 from the $50,000 foundation grant. On March 15, the nonprofit received $8,000 in cash from pledges receivable. On March 20, the nonprofit paid $5,000 in cash to reduce accounts payable. On March 25, the nonprofit sold $1,000 in marketable securities. On March 30, the nonprofit incurred $2,000 in salaries payable. On March 31, the nonprofit consumed $1,000 worth of supplies.