Question
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.
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
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