Question 2: a. NFP Inc., a registered charity, has received four contributions during the past year: a delivery van with a value of $30,000 and a useful life of 5 years (with no salvage value); the charity would otherwise have had to purchase such a van. an endowment contribution received at the beginning of the year in the amount of $100,000 which was invested and earned $3,000 interest during the year. There were no restrictions as to the spending of the investment income from this endowment. a cash contribution of $20,000 to be used for a special program; $12,000 was spent on this program during the past year with the balance to be spent next year. a cash donation of $10,000 to be used as the board of directors decided. Prepare journal entries to record these events (including the amortization of the cost of the van) assuming NFP Inc. does not use fund accounting but accounts for donations using the deferred contribution method. b. Prepare journal entries for the following selected transactions of the Eastern Kidney Association, which uses the restricted fund method and has an operating fund, a capital fund and an endowment fund: Pledges totaling $325,000 were received of which $65,000 applies to the operations of the following year. It is estimated that 3% of the pledges will be uncollectible. The association purchased office equipment at a cost of $5,100. Pledges of $285,000 were collected and pledges totaling $3,750 were written off as uncollectible. Air time with a value of $7,200 was donated by a local radio station. Interest and dividends received were $13,700 on endowment fund investments. Endowment fund earnings are unrestricted. Depreciation for the year amounted to $35,600.