INVOLVE was incorporated as a not-for-profit organization on January 1, 2023. During the fiscal year ended December 31, 2023, the following transactions occurred. A business donated rent-free office space to the organization that would normally rent for $36,400 a year. A fund drive raised $192,000 in cash and $114,000 in pledges that will be paid next year. A state government grant of $164,000 was received for program operating costs related to public health education. Salaries and fringe benefits paid during the year amounted to $209,960. At year-end, an additional $17,400 of salaries and fringe benefits were accrued. A donor pledged $114,000 for construction of a new building, payable over five fiscal years, commencing in 2025. The discounted value of the pledge is expected to be $95,660. Office equipment was purchased for $13,400. The useful life of the equipment is estimated to be five years. Office furniture with a fair value of $11,000 was donated by a local office supply company. The furniture has an estimated useful life of 10 years. Furniture and equipment are considered net assets without donor restrictions by INVOLVE. Telephone expense for the year was $6,600, printing and postage expense was $13,400 for the year, utilities for the year were $9,700 and supplies expense was $5,700 for the year. At year-end, an immaterial amount of supplies remained on hand and the balance in accounts payable was $5,000. Volunteers contributed $16,400 of time to help with answering the phones, mailing materials, and various other clerical activities. It is estimated that 90 percent of the pledges made for the 2024 year will be collected. Depreciation expense is recorded for the full year on the assets recorded in item 5. All expenses were allocated to program services and support services in the following percentages: public health education, 35 percent; community service, 30 percent; management and general, 25 percent; and fund-raising, 10 percent. Net assets were released to reflect satisfaction of state grant requirements that the grant resources be used for public health education program purposes. All nominal accounts were closed to the appropriate net asset accounts.

J 09 110.019 94,302 78,585 31,434 Public Health Education Program Community Service Program Management and General Fund-Raising Salaries and Benefits Expense Rent Expense Telephone Expense Printing and Postage Expense Supplies Expense 227.360 38,400 6,600 13,400 5,700 Utilities Expense 9.700 Depreciation Expense 3.780 10 Net Assets Released-Satisfaction of Purpose Restriction-With Dono 110,019 Net Assets Released-Satisfaction of Purpose Restriction-Without 110,019 L 11(a) 0 % 0 110.019 Contributions-Without Donor Restrictions Net Assets Without Donor Restrictions Public Health Education Program Community Service Program Management and General Fund-Raising 94,302 78,585 31,434 M 11(b) Contributions-With Donor Restrictions-Time 0 Net Assets Released-Satisfaction of Purpose Restriction-Without N 11(c) 110,019 Net Assets With Donor Restrictions Net Assets Released-Satisfaction of Purpose Restriction-With Do 110.019 o 11(d) Net Assets Released-Satisfaction of Purpose Restriction-Without Do 110,019 Net Assets Without Donor Restrictions 110.019 Journal entry worksheet Record the transfer of contributions to net assets with donor restrictions account. Note: Enter debits before credits. Transaction General Journal Debit Credit 11(b) 0 ContributionsWith Donor RestrictionsTime Net Assets Released-Satisfaction of Purpose Restriction-Without Donor Restrictions 0 Record entry Clear entry View general journal