Preparation of not-for-profit journal entries and financial statements Wings is a not-for-profit organization dedicated to the promotion of flying in youths. It owns a number of airplanes at various airports which it uses to provide introductory flights in order to encourage young adults to pursue flight training lessons and possible careers as commercial airline pilots. At the end of last year, Wings reported the following trial balance: DR CR Cash Investments Contributions receivable $216,000 2,880,000 624,000 Property, plant and equipment, net Payables 1,440,000 $480,000 Long-term liabilities Net assets-without donor restrictions 960,000 1,920,000 Net assets-with donor restrictions 1,800,000 $5,160,000 $5,160,000 At year-end, the investments are allocated as follows: Investment-Without Donor Restrictions 40% Investment-With Donor Restrictions 60% These investments earn a 5% cash return during the following year. During the following year, Wings received $3,360,000 of unrestricted donations and $390,000 of donations whose use is restricted by donors as to use. All contributions are on account when made. Program and support expenses for the current year are $3,120,000 and $444,000, respectively, both on account. Of the program expenses, $240,000 are funded from restricted funds as they are used for approved expenditures. During the year, Wings purchased an airplane for a cash purchase price of $348,000 and recorded depreciation expense on existing depreciable assets of $108,000 (90% of which is allocated to program expenses and 10% of which is allocated to support expenses). The organization purchased additional investments with excess cash in the amount of $144,000 and also repaid $138,000 principal amount of long-term debt. Finally, during the year, the organization collected $3,600,000 of contributions receivable and paid $3,480,000 of accounts payable.