The Edison Foundation, a not-for-profit organization, begins the fiscal year with $200,000 cash, Net Pledges Receivable of $200,000, Investments of $300,000 and PPE of $200,000. 80% of the net assets are Without donor restrictions (all Undesignated). All net assets with donor restrictions are Purpose restricted.

During the year the foundation had the following transactions:

a. Received cash of $100,000 on the pledges and wrote off another $4,000 as uncollectible.

b. Received $200,000 in cash gifts that are unconditional and not donor-restricted.

c. Paid rent of $12,000 and utilities of $16,000

d. Computed depreciation of $40,000

e. Spent $30,000 for new office furniture. The cash had been received in the previous year from a donor who had requested the funds to be used in this manner.

requirements:

a) Prepare the journal entries to record these transactions.

b) What is the Change in Net Assets due to these transactions? Show separate computations for Net Assets without Donor Restrictions and Net Assets with Donor Restrictions.