Journal entries for contributions to a VHWO Feed the Needy (FTN), a VHWO, has three programs: (a) providing meals for the needy in its own facility (Service to Needy program); (b) providing meals for senior citizens through a contract with the County Department for the Aging (Service to Seniors program); and (c) distributing food to other facilities in the area that serve the needy (Food Distribution program). FTN maintains a warehouse to store donated food and has cooking and serving facilities. It does not use fund accounting. Prepare journal entries to record the following transactions and events, which occurred during its fiscal year (which was the calendar year):

1. On January 10, in response to its annual fundraising drive to finance day-to-day operations, FTN received $150,000 of cash donations and $400,000 of promises to donate cash. Based on experience, FTN expected to collect 80 percent of the promises made to donate cash, all of which are to be used to finance its activities during the current fiscal year.

2. During the year, FTN received cash of $310,000 from the promises to give (see Transaction 1) and wrote off the remaining receivables as uncollectible.

3. To meet its expanding operations, FTN determined that it needed to add storage facilities at an estimated cost of $400,000. Dr. Ted Golfit, noted research engineer, advised FTN that he would contribute $200,000, provided FTN raised an equal amount from other contributions.

4. Attorneys A. and E. Gorman provided free legal services to FTN during the year. FTN would have purchased the services for $10,000 if they had not been donated.

5. FTN raised $220,000 in cash as a result of its fundraising campaign to add to its storage facilities (see Transaction 3). FTN contacted Dr. Golfit, who gave FTN a check for $200,000.

6. FTN constructed additional storage facilities at a cost of $425,000. It paid for the facilities by using $420,000 it had raised for that purpose (see Transaction 5) and by using $5,000 of its available cash without donor restrictions.

7. FTNs contract with the County Department for the Aging called for the county to make quarterly advance payments to FTN. The contract required FTN to report to the county after the end of each quarter, showing actual costs to provide food during the quarter and billing for any difference between actual costs and the advance. FTN received a $20,000 advance payment from the county.

8. Between January and March, FTN spent $23,000 in cash providing services through its contract with the county (see Transaction 7). On April 4, FTN sent an invoice to the county, showing it had spent $23,000 on the program, deducting the $20,000 advance, and requesting an additional $3,000.

9. FTN received donations of 600,000 pounds of food from supermarkets, bakeries, and food wholesalers. FTN valued the food at $1.50 per pound, based on a national study. All donated food is initially recorded in inventory.

10. FTN distributed 540,000 pounds of food to other facilities under its Food Distribution program and used 30,000 program (see Transaction 9).

11. Local residents donated 1,000 hours of their time serving food at FTNs facility. If the residents had not donated their time, FTN would have paid $8 an hour for the services.

12. FTN paid $200,000 to store food in its warehouse, to package and deliver food to other facilities, and to cook at its own facility. The $200,000 was charged to the following programs: Food Distribution $175,000; Service to Needy $25,000.

Note: If no journal entry is necessary, select the no entry required - debit and no entry required - credit for the account names and record zero for the debit and credit amounts. (EXCEPTION: For Journal entry #3, select "No entry required - debit" and enter zero for the debit and credit amounts.)

I need help figuring out transactions 6 and 8. Thank you!

JV Number Feed the Needy journal entries Debit Credit 1 Cash 0 150,000 400,000 0 0 80,000 470,000 0 2 Contribution receivables Allowance for uncollectible contributions Contribution revenue - without donor restrictions To record contribution revenue Cash Allowance for uncollectible contributions Contribution revenue - without donor restrictions Contribution receivables To record receipt of contribution receivable 310,000 0 V 0 80,000 10,000 0 0 400,000 3 0 0 X 4 10,000 0 0 10,000 Conditional gift pledge is not recognized Expenses - administration Contributed services revenue - without donor restrictions To record contributed service revenue for legal services Cash Contribution revenue - with donor restrictions To record fundraising.gift for storage facility. Cash 5 220,000 0 0 220,000 200,000 0 0 200,000 6 5,000 0 x 0 5,000 x Contribution revenue - with donor restrictions To record match gift JV3 conditional contribution Contribution revenue - without donor restrictions Contribution revenue - with donor restrictions To record reclassification of the satisfication of donor restriction Warehouse building Cash To record the acquisition of the warehouse facility 425,000 0 0 425,000 7 Cash 20,000 0 0 20,000 8 23,000 0X Deferred revenue To recorgnize the contract quarterly advanced payment Expenses - food distribution program Cash To record cash used for services to seniors program Deferred revenue Accounts receivable 0 23,000 20,000 0 V 3,000 0 Contract revenue 0 23,000 9 900,000 0 0 900,000 10 0 810,000 45,000 v 0 0 855,000 To record program available resources Inventory - food Contributed food revenue - without donor restrictions To record donated food Expenses - food distribution program Expenses - service to needy program Inventory - food To record food distribution No entry required - debit No entry required - credit Food services does not require specialized expertise Expenses - food distribution program Expenses - service to needy program Cash To record cash paid to warehouse, package and deliver food 11 0 0 0 0 12 V 0 175,000 25,000 0 0 200,000