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For the following transactions and events, indicate what effect each will have on the three classes of net assets using this format. Put an X

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For the following transactions and events, indicate what effect each will have on the three classes of net assets using this format. Put an X in the appropriate column. If the net assets are unaffected, leave the column blank. Unrestricted Net Assets Temporarly Restricted Net Assets Permanently Restricted Net Assets Increase Decrease Increase Decrease Increase Decrease Ex1 Ex2 Exl: Received a pledge from a donor to provide $1,000 a year to support Ex2: A time restriction on cash received in a prior year expired in the current 1. The governing board approved a capital fund-raising campaign in sup- summer educational programs to be held each July for five years. period. port of a new building. The capital campaign in support of a new build- 2. In addition to outside pledges, the board set aside $100,000 of unre- 3. Cash collections on the pledges described in (1) totaled $97,000 in the 4. $25,000 was expended from the capital campaign on architects' fees. 5. Operating revenues (admission fees and gift shop sales) amounted to ing brought in pledges of $150,000. stricted resources for the new building. current year The organization records all fixed assets in the unrestricted class of net assets $80,000 6. Salaries, utilities, and operating supplies totaled $76,000. 7. Depreciation on plant and equipment amounted to $25,000. 8. Volunteers staffing the gift shop contributed 500 hours. The services did not require specialized skills but are estimated at a value of $8.50 per hour Securities valued at $100,000 were received for permanent endowment. Income earned on the endowment is to be used to sponsor visiting speakers. 9. 10. Interest and dividends received on the endowment totaled $2,000. 11. An individual makes a pledge on December 31, promising to donate $100,000 on the condition that the not-for-profit organization can raise matching pledges before July of the next year

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