Problem 1 - Journal Entries for Nongovernmental, Not-for-Profit Entities

Transactions: The following selected transactions occurred for a nongovernmental, not-for-profit organization.Requirement: Prepare the journal entries for the transactions below.

1.Unrestricted cash contributions received during the year, $300,000.

2.Restricted cash contributions were received during the year for the following: (a) Building fund, $202,000; and (b) Permanent Endowment, $1,000,000.

3.A benefit concert was held to raise resources for the building fund.Receipts totaled $10,400 and direct costs incurred totaled $1,850.

4.Restricted cash contributions were received during the year for the Education programs, $43,000.

5.Salary expenses incurred for the education programs were paid, $14,000.

6.Payments to the building contractor during the year were $110,000.

7.Cost of materials used for education programs during the year, $32,000.

8. Earnings received on building fund investments were not restricted by donors but the board requires that they be used to finance the building.The earnings on those investments received for the year were $2,500.