Sing Sing Singers (SSS) is a local opera company. A nonprofit, it finances its activities through contributions and admissions fees. It accounts for its expenses through four major functions: regular events, special events, administration, and fundraising. For each function, it maintains three accounts by nature of expense: salaries, supplies and other, and occupancy. On July 1, 2018, the start of its fiscal year, SSS had cash on hand amounting to $12,000, of which $7,000 represented net assets without donor restrictions and $5,000 represented net assets with donor restrictions. The following transactions and events occurred during the year. Prepare journal entries to record these transactions; also, prepare a statement of activities and a statement of expenses by function and nature for the year ended June 30, 2019. 1. The $5,000 of net assets with donor restrictions resulted from a donation made during the previous year that could be used only during the year beginning July 1, 2018. On July 1 the net assets became available for spending. 2. SSS held its annual fundraising dinner at a cost of $3,000 (use the expense account Supplies and other). As a result of the dinner, SSS received cash contributions of $10,000 and pledges totaling $40,000. Based on prior experience, SSS estimated it would collect 90 percent of the pledges. 3. SSS collected $37,000 in cash on the pledges received in Transaction 2 and wrote off the other pledges as uncollectible. 4. SSS trustees received the following cash donations: a. $15,000 from T. Robbins, to be used solely for the purpose of a special presentation of The Marriage of Figaro at the Shawshank Correctional Center in Ossining b. $25,000 from the Chester County Council on the Arts, to be used for any purpose deemed appropriate by the trustees. 5. SSS performed The Marriage of Figaro at Shawshank, spending the entire $15,000 donation on salaries for the performers. Expenses were charged to the Special events function. 6. SSS collected $162,000 in admissions fees from its opera performances during the year. It also had the following expenses, which it paid in cash: Regular Events Special Events Administration Salaries $150,000 $15,000 $12,000 Supplies and other 30,000 3,000 1,000 Occupancy 20,000 2,000 Total $200,000 $20,000 $13,000 7. SSS received the benefit of the following donated services during the year: a. G. Verdi, a lawyer, prepared contracts with the performers. Had Verdi charged for this work, the cost to SSS would have been $4,000. b. W. A. Mozart, a carpenter, constructed sets for the regular events. Had Mozart charged for this work, the cost to SSS would have been $8,000. C. Local bankers G. Donizetti and G. Puccini served as ushers for all performances. Had SSS paid for this work, the cost would have been $1,000. Ref. Description Debit Credit 1 - 0 0 0 2 O O O 0 0 To record payment for costs related to fundraising dinner. 0 0 0 0 To record receipt of cash donations. Contributions revenue-Support without donor restrictions O O O ooo A To record promises to give cash. 3 Cash 0 0 0 Contributions revenue-Support without donor restrictions O O O O O O O 0 4 0 0 Contributions revenue-Support without donor restrictions 0 5 0 o o 0 To record satisfaction of restrictions on donation. 0 0 0 0 To record payment of salaries. 6 0 o o 0 To record receipt of admissions fees. Regular events expense (salaries) Regular events expense (supplies and other) Regular events expense (occupancy) Special events expense (salaries) Special events expense (supplies and other) Special events expense (occupancy) Administration expense (supplies and other) O O O O O O O O O A To record payment of costs related to opera preformances during the year. Administration expense (supplies and other) 7 0 o oo 0 0 ooo ooo O O O Use a negative sign with your answers, when appropriate (Net assets released from restrictions, Total revenues/other support, Change in net assets). Otherwise do not use negative signs with answers. Sing Sing Singers Statement of Activities For the Fiscal Year Ended June 30, 2019 Without Donor With Donor Restrictions Resriticions Total Revenues and Other Support: Contributions $ 0 $ 0 $ Donated services Admissions fees 0 Net assets released from restrictions Satisfaction of time restrictions 0 0 0 Satisfaction of program restrictions 0 Total revenues and other support 0 Expenses: Regular events 0 Special events 0 Administration Fundraising 0 Total expenses Change in net assets Net assets, beginning of year 0 Net assets, end of year 0 $ 0 $ Oo o oOo ooo oooooooo || |1 $ Prepare a statement of expenses by function and nature for the year ended June 30, 2019. Sing Sing Singers Statement of Expenses by Function and Nature For the Fiscal Year Ended June 30, 2019 Program Activities Supporting Activities Regular Events Special Events Administration Fundraising Total Salaries $ 0 $ 0 $ 0 $ 0 $ Supplies and other 0 0 0 Occupancy 0 0 0 Total expenses $ 0 $ 0 $ 0 $ 0 $ 0 Oo oo oood