Required information [The following information applies to the questions displayed below.] INVOLVE was incorporated as a not-for-profit organization on January 1, 2023. During the fiscal year ended December 31 , 2023 , the following transactions occurred. 1. A business donated rent-free office space to the organization that would normally rent for $35,000 a year. 2. A fund drive raised $185,000 in cash and $100,000 in pledges that will be paid next year. A state government grant of $150,000 was received for program operating costs related to public health education. 3. Salaries and fringe benefits paid during the year amounted to $208,560. At year-end, an additional $16,000 of salaries and fringe benefits were accrued. 4. A donor pledged $100,000 for construction of a new building, payable over five fiscal years, commencing in 2025 . The discounted value of the pledge is expected to be $94,260. 5. Office equipment was purchased for $12,000. The useful life of the equipment is estimated to be five years. Office furniture with a fair value of $9,600 was donated by a local office supply company. The furniture has an estimated useful life of 10 years. Furniture and equipment are considered net assets without donor restrictions by INVOLVE. 6. Telephone expense for the year was $5,200, printing and postage expense was $12,000 for the year, utilities for the year were $8,300, and supplies expense was $4,300 for the year. At year-end, an immaterial amount of supplies remained on hand and the balance in accounts payable was $3,600. 7. Volunteers contributed $15,000 of time to help with answering the phones, mailing materials, and various other clerical activities. 8. It is estimated that 90 percent of the pledges made for the 2024 year will be collected. Depreciation expense is recorded for the full year on the assets recorded in item 5 . 9. All expenses were allocated to program services and support services in the following percentages: public health education, 35 percent; community service, 30 percent; management and general, 20 percent; and fund-raising, 15 percent. 10. Net assets were released to reflect satisfaction of state grant requirements that the grant resources be used for public health education program purposes. 11. All nominal accounts were closed to the appropriate net asset accounts. Required a. Prepare journal entries to record these transactions. Expense transactions should be initially recorded by object classification; in entry 9 , expenses will be allocated to functions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Record the business donation of rent-free office space that would normally rent for $35,000 a year. Record the $185,000 fund drive raised in cash and $100,000 in pledges that will be paid within one year. A state government grant of $150,000 was received for program operating costs related to public health education. Record the $208,560 Salaries and fringe benefits paid during the year. At year-end, an additional $16,000 of salaries and fringe benefits were accrued. Record the $100,000 pledged by donor for construction of a new building, payable over five fiscal years, commencing in 2022. The discounted value of the pledge is expected to be $94,260. Record the $12,000 purchase of Office equipment with a useful life of five years. Office furniture worth $9,600 donated by a local office supply company with a useful life of 10 years. Record the $5,200 Telephone expense, $12,000 printing and postage expense, $8,300 utilities, and $4,300 supplies expense for the year. At year-end, an immaterial amount of supplies remained on hand and the balance in accounts payable was $3,600. Record the $15,000 worth contribution of time by volunteers to help with answering the phones, mailing materials, and various other clerical activities. Record the $10,000 provision for uncollectible pledges. Record the depreciation expenses for the year. Record the allocation of expenses to program services and support services with public health education, 35 percent; community service, 30 percent; management and general, 20 percent; and fund-raising, 15 percent. Record the release of Net assets to reflect satisfaction of state grant requirements that the grant resources be used for public health education program purposes. Record the closure of all nominal accounts at year end. Record the transfer of contributions to net assets with donor restrictions account. Record the transfer to with donor restrictions account. Record the transfer to without donor restrictions account. Answer is not complete. Required information [The following information applies to the questions displayed below.] INVOLVE was incorporated as a not-for-profit organization on January 1, 2023. During the fiscal year ended December 31 , 2023 , the following transactions occurred. 1. A business donated rent-free office space to the organization that would normally rent for $35,000 a year. 2. A fund drive raised $185,000 in cash and $100,000 in pledges that will be paid next year. A state government grant of $150,000 was received for program operating costs related to public health education. 3. Salaries and fringe benefits paid during the year amounted to $208,560. At year-end, an additional $16,000 of salaries and fringe benefits were accrued. 4. A donor pledged $100,000 for construction of a new building, payable over five fiscal years, commencing in 2025 . The discounted value of the pledge is expected to be $94,260. 5. Office equipment was purchased for $12,000. The useful life of the equipment is estimated to be five years. Office furniture with a fair value of $9,600 was donated by a local office supply company. The furniture has an estimated useful life of 10 years. Furniture and equipment are considered net assets without donor restrictions by INVOLVE. 6. Telephone expense for the year was $5,200, printing and postage expense was $12,000 for the year, utilities for the year were $8,300, and supplies expense was $4,300 for the year. At year-end, an immaterial amount of supplies remained on hand and the balance in accounts payable was $3,600. 7. Volunteers contributed $15,000 of time to help with answering the phones, mailing materials, and various other clerical activities. 8. It is estimated that 90 percent of the pledges made for the 2024 year will be collected. Depreciation expense is recorded for the full year on the assets recorded in item 5 . 9. All expenses were allocated to program services and support services in the following percentages: public health education, 35 percent; community service, 30 percent; management and general, 20 percent; and fund-raising, 15 percent. 10. Net assets were released to reflect satisfaction of state grant requirements that the grant resources be used for public health education program purposes. 11. All nominal accounts were closed to the appropriate net asset accounts. Required a. Prepare journal entries to record these transactions. Expense transactions should be initially recorded by object classification; in entry 9 , expenses will be allocated to functions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Record the business donation of rent-free office space that would normally rent for $35,000 a year. Record the $185,000 fund drive raised in cash and $100,000 in pledges that will be paid within one year. A state government grant of $150,000 was received for program operating costs related to public health education. Record the $208,560 Salaries and fringe benefits paid during the year. At year-end, an additional $16,000 of salaries and fringe benefits were accrued. Record the $100,000 pledged by donor for construction of a new building, payable over five fiscal years, commencing in 2022. The discounted value of the pledge is expected to be $94,260. Record the $12,000 purchase of Office equipment with a useful life of five years. Office furniture worth $9,600 donated by a local office supply company with a useful life of 10 years. Record the $5,200 Telephone expense, $12,000 printing and postage expense, $8,300 utilities, and $4,300 supplies expense for the year. At year-end, an immaterial amount of supplies remained on hand and the balance in accounts payable was $3,600. Record the $15,000 worth contribution of time by volunteers to help with answering the phones, mailing materials, and various other clerical activities. Record the $10,000 provision for uncollectible pledges. Record the depreciation expenses for the year. Record the allocation of expenses to program services and support services with public health education, 35 percent; community service, 30 percent; management and general, 20 percent; and fund-raising, 15 percent. Record the release of Net assets to reflect satisfaction of state grant requirements that the grant resources be used for public health education program purposes. Record the closure of all nominal accounts at year end. Record the transfer of contributions to net assets with donor restrictions account. Record the transfer to with donor restrictions account. Record the transfer to without donor restrictions account. Answer is not complete