Endowment Contributions

The Good Friends Animal Society has a $1 million endowment contributed by an animal lover. Investment income and realized and unrealized gains and losses are donor restricted to pay for costs of kitten nurseries. During the year, dividends and interest received in cash on endowment investments totaled $40,000, and unrealized gains on investments were $2,000. Endowment income spent on kitten nursery costs totaled $43,000.

Required

Prepare journal entries to record the events described for the current year. For accounts shown on the statement of activities, indicate the category of net assets affected.

\begin{tabular}{|c|c|c|} \hline Description & Debit & Credit \\ \hline^ & & \\ \hline & & \\ \hline \multicolumn{3}{|l|}{ To record dividends and interest received on investments. } \\ \hline & & \\ \hline & & \\ \hline \multicolumn{3}{|l|}{ To record unrealized gains on investments. } \\ \hline & & \\ \hline & & \\ \hline \multicolumn{3}{|l|}{ To record release of restriction. } \\ \hline & & \\ \hline & & \\ \hline To record endownment income spent on kitten nursery costs. & & \\ \hline \end{tabular}