Journal entries, statement of activities, statement of functional expenses for a nonprofit Sing Sing Singers (SSS) is a local opera company. As a nonprofit, it finances its activities through contributions and admissions fees. It accounts for its expenses through four major functions: regular events, special events, administration, and fundraising. For each function, it maintains three accounts by nature of expense: salaries, supplies and other, and occupancy. On July 1 , the start of its fiscal year, SSS had cash on hand amounting to $9,600, of which $5,600 represented net assets without donor restrictions and $4,000 represented net assets with donor restrictions. The following transactions and events occurred during the year. Prepare journal entries to record these transactions; also, prepare a statement of activities and a statement of expenses by function and nature for the year ended June 30. 1. The $4,000 of net assets with donor restrictions resulted from a donation made during the previous year that could be used only during the current year. On July 1 of the current fiscal year the net assets became available for spending. 2. SSS held its annual fundraising dinner at a cost of $2,400 (use the expense account Supplies and other). As a result of the dinner, SSS received cash contributions of $8,000 and pledges totaling $32,000. Based on prior experience, SSS estimated it would collect 90 percent of the pledges, 3. SSS collected $29,600 in cash on the pledges received in Transaction 2 and wrote off the other pledges as uncollectible. 4. SSS trustees received the following cash donations: a. $12,000 from T. Robbins, to be used solely for the purpose of a special presentation of The Marriage of Figaro at the Shawshank Correctional Center in Ossining: b. $20,000 from the Chester County Council on the Arts, to be used for any purpose deemed appropriate by the trustees. 5. SSS performed The Marriage of Figaro at Shawshank, spending the entire $12,000 donation on salaries for the performers. Expenses were charged to the Special events function. 6. SSS collected $129,600 in admissions fees from its opera performances during the year, It also had the following expenses, which it paid in cash: 7. SSS received the benefit of the following donated services during the year: a. G. Verdi, a lawyer, prepared contracts with the performers. Had Verdi charged for this work, the cost to 555 would have been $3,200. b. W. A. Mozart, a carpenter, constructed sets for the regular events. Had Mozart charged for this work, the cost to sss would have been $6,400. c. Local bankers G. Donizetti and G. Puccini served as ushers for all performances. Had SSS paid for this work, the cost would have been $800. Note: If no journal entry is necessary, use the account titles No entry required - debit and No entry required - credit with zero for the debit and Note: If no journal entry is necessary, use the account viles No entry required - debis and No entry required-credit with zero for the debit and credit amounts \begin{tabular}{|l|l|} \hline Entry \\ \hline 1 \\ \hline & \\ \hline & Toreclass the cash contribution \\ \hline \end{tabular} To record fund raising expense Torecord fundraising contribution To record oledge with allowance for nomreceipt In record the piyment of the pledged contritution To record cash dogations: 5 To reclass the sarisfaction of program restrictions To record the disbursement for salares. 6 To record the admission fee revenuse Torecond performance expenses 7 To record contribited sericer Sing Sing Singers Statement of Activities For the Fiscal Year Ended June 30 Without Donor With Donor Restrictions Restrictions Total Revenues and Other Support: Contributions $ \$ Donated services Admissions fees Net assets released from restrictions: Satisfaction of time restrictions Satisfaction of program restrictions Total revenues, gains and other support Expenses: Regular events Special events Administration Fund-raising Total expenses Change in net assets Net assets, beginning of year Net assets, end of year \begin{tabular}{lll|} 5 & 5 & 5 \\ \hline \hline \end{tabular} Sing Sing singers Statement of Expenses by Function and Nature For the Fiscal Year Ended June 30 Program Activities Supporting Activities Regular Special Events Events Administration Fundraising Total Salaries s Supplies and other Occupancy Total expenses 5 s 5