Exercise 6 (LO 10) VHWO, journal entries. Record the following events of Chemical Dependency Clinic, a VHWO:

1. Membership dues of $9,000 were collected.

2. Cash contributions of $22,000 and pledges for $32,000 were received.

3. It is estimated that 10% of the above pledges will proveun collectible.

4. A fund-raising dinner grossed $12,000 from the sale of 480 tickets. The catered dinner cost $15 each for the 420 people who attended, plus $200 for the rental of the dining room. Pay- ment for these costs was made.

5. A classic car was donated to the organization. The car has an estimated fair value of $75,000. It will be the main attraction of an auction to be held in the next accounting per- iod. The proceeds of the auction are part of the budget for activities in the next period.

6. To expand the services of the clinic, aprofessional fund-raising group washired tounder take a 6-month campaign. At the end of the six months, the group submitted the report shown on next page.

Cash collected............................................. $ 70,000

Pledges(estimated to be 95% collectible)........................ 30,000

Total proceeds............................................. $100,000

Less 20% fund-raising fee (regardless of collections)................ 20,000

Net proceeds from drive ..................................... $ 80,000