Entries, statement of activities, statement of functional expenses for a nonprofit) Sing Sing Singers (SSS) is a local opera company. A nonprofit, it finances its activities through contri- LO 2 butions and admissions fees. It accounts for its expenses through four major functions: regular events, special events, administration, and fundraising. For each function, it maintains three accounts by nature of expense: salaries, supplies and other, and occupancy. On July 1, 2018, the start of its fiscal year, SSS had cash on hand amounting to $12,000, of which $7,000 represented net assets without donor restric- tions and $5,000 represented net assets with donor restrictions. The following transactions and events occurred during the year. Prepare journal entries to record these transactions; also, prepare a statement of activities and a statement of expenses by function and nature for the year ended June 30, 2019. 1. The $5,000 of net assets with donor restrictions resulted from a donation made during the previous year that could be used only during the year beginning July 1, 2018. On July 1 the net assets became available for spending. 2. SSS held its annual fundraising dinner at a cost of $3,000 (use the expense account Supplies and other). As a result of the dinner, SSS received cash contributions of $10,000 and pledges totaling $40,000. Based on prior experience, SSS estimated it would collect 90 percent of the pledges. 3. SSS collected $37.000 in cash on the pledges received in Transaction 2 and wrote off the other pledges as uncollectible. 4. SSS trustees received the following cash donations: a. $15,000 from T. Robbins, to be used solely for the purpose of a special presentation of The Mar- riage of Figaro at the Shawshank Correctional Center in Ossining. b. $25,000 from the Chester County Council on the Arts, to be used for any purpose deemed ap- propriate by the trustees. 5. SSS performed The Marriage of Figaro at Shawshank, spending the entire $15,000 donation on salaries for the performers. Expenses were charged to the Special events function. 6. SSS collected $162,000 in admissions fees from its opera performances during the year. It also had the following expenses, which it paid in cash