Prepare journal entries to record cach of the following transactions occurring during the fiscal year ending June 30, 2014 assuming the organization follows the guidance of (A) SFAS #116 and #1 17 and (B) GASB Statements #34 or #35. Also, you should identify the net impact on equity for each transaction. For those organizations following FASB guidance, you should prepare entries under the assumption that property, plant, and equipment is considered to be unrestricted resources. Transactions: 1. Cash contributions were received as follows: (a) S1,000,000 for any purposes desired by the school, (b) $600,000 restricted by donors for research purposes, (c) $100,000 to be used during the next fiscal year in any manner the NFP sees fit, (d) $800,000 restricted by donors for the purchase of new equipment, and (e) $2,000,000 to be kept in perpetuity with half of all earnings to be spent for providing free meals to the elderly and half available for the NFP to spend as it sees fit. 2. 3. 4. 5. 6. 7. The NFP spent $500,000 for the purchase of new equipment. The NFP spent $350,000 for research. b The $2,000,000 to be kept in perpetuity was invested in marketable securities. Earnings of $40,000 were received on the $2,000,000 endowment. The $2,000,000 in marketable securities was sold at a gain of $100,000. e The governing board of the NFP set aside S150.000 to be used for future land expansion A payment of $120,000 ($100,000 for principal reduction and $20,000 in interest) was made on a mortgage that had been signed five years ago when the NFP purchased its current office building. a. 8. 9. Depreciation of $15,000 was recorded for the year