Preparation of journal entries and financial statements for not-for-profit Beagles Forever is a not-for-profit organization dedicated to the health, welfare, and promotion of beagles. One of its most famous is Uno, who won best in show at the prestigious Westminster Kennel Club Dog Show. Best-in-show judge Dr. J. Donald Jones of Marietta, Georgia, said that while the choice was difficult, the winner fit the standard for perfection for the beagle, citing in particular the dogs attitude. Everything he does is correct. And just look at his face, said Jones after awarding Uno his 33rd best-in-show title.

The organization reported the following post-closing trial balance at the end of last year:

Beginning Balances:	DR	CR
Cash	$234,000
Investments	3,120,000
Contributions receivable	676,000
PPE, net	1,560,000
Payables		$520,000
Long-term liabilities		1,040,000
Net assetsunrestricted		2,080,000
Net assetstemporarily restricted		1,430,000
Net assetspermanently restricted		520,000
	$5,590,000	$5,590,000

The organization reported a cash return of 4% during the subsequent year, and the investments are allocated as follows:

InvestmentUnrestricted	=	20%
InvestmentTemporarily Restricted	=	30%
InvestmentPermanently Restricted	=	50%

In addition to the recognition of investment returns, the organization reported the following revenues and expenses, all on account:

Revenuescontributions (unrestricted)	$3,640,000
Revenuescontributions (temporarily restricted)	364,000
Revenuescontributions (permanently restricted)	58,500
Expensesprogram	3,380,000
Expensessupport	481,000

Of the total expenses, $260,000 relate to uses that are paid from temporarily restricted funds in accordance with the stipulations of the donors and are, therefore, released from restriction.

During the year, the organization collected $3,900,000 of receivables and paid $3,770,000 of accounts payable. In addition, it purchased long-term assets for cash in the amount of $169,000 and recognized depreciation expense of $117,000. The organization also purchased additional investments with excess cash in the amount of $156,000 and repaid $149,500 principal amount of long-term debt.

Required a. Prepare journal entries for the organizations financial activities during the year.

General Journal
Description
	Answer	Answer
Investment income--unrestricted	Answer	Answer
Investment income--temporarily restricted	Answer	Answer
	Answer	Answer
To record return on investments during the year
	Answer	Answer
To record revenues received during the year
	Answer	Answer
To record expenses during the year
	Answer	Answer
To record release of funds temporarily restricted by donors
	Answer	Answer
To record collection of receivables during the year
	Answer	Answer
To record payment of payables during the year
	Answer	Answer
To record purchase of long-term assets during the year
	Answer	Answer
To record depreciation during the year
	Answer	Answer
To record purchase of additional investments during the year
	Answer	Answer
To record repayment of principal on long-term debt during the year

b. Prepare the year-end Statement of Activities and Statement of Financial Position.

Beagles Forever Consolidated Statement of Activities
		Temporarily	Permanently