Question
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. Prepare journal
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.
Prepare journal entries to record these transactions. Expense transactions should be initially recorded by object classification; in entry 3, expenses will be allocated to functions.
1. A fund drive raised $188,500 in cash and $107,000 in pledges that will be paid next year. A state government grant of $157,000 was received for program operating costs related to public health education.
2. It is estimated that 80 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. (Office equipment was purchased for $12,700. The useful life of the equipment is estimated to be four years. Office furniture with a fair value of $10,300 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.)
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