Preparation of not-for-profit journal entries and financial statements Youth Camps, Inc. is a not-for-profit organization that owns a number of summer camps for inner-city children. At the end of last year, the organization reported the following trial balance: DR CR Cash Investments Contributions receivable $266,400 3,552,000 769,600 Property, plant and equipment, net Payables 1,776,000 $592,000 Long-term liabilities 1,184,000 Net assets-without donor restrictions Net assets-with donor restrictions 2,368,000 2,220,000 $6,364,000 $6,364,000 The investments are allocated as follows: 40% are unrestricted, 60% are donor restricted. Investment income (paid in cash) is 5% for the current year. During the year, the organization received $4,144,000 in donations without donor restrictions and $414,400 in donations with donor restrictions. All of these donations are on account. In addition, it recognized program expenses of $3,848,000 and expenses relating to support of $547,600, both on account. Of the program expenses, $296,000 is spent using net assets with donor restrictions for approved purposes, thus receiving the appropriate release from the donors' restrictions. Youth Camps collected $4,440,000 of contributions receivable, paid $4,292,000 of payables, and purchased additional land in the amount of $192,400 (depreciation expense of $133,200 allocated 90% to program expenses and 10% to support expenses). Interest expense on the long-term debt is included in the expenses referenced above, and no repayment of the principal is recognized during the year.