On January 1, the Voluntary Action Agency received a cash contribution of $325,000 restricted to the purchase of buses to be used in transporting senior citizens. On January 2 of that same year, buses were purchased with the $325,000 cash. The buses are expected to be used for five years and have no salvage value at the end of that time.

1. Record the journal entries on January 1, January 2, and December 31 for the receipt of cash, the purchase of buses, and one years depreciation, assuming that plant assets are recorded as unrestricted assets at the time of purchase.