Question
The Elder Citizens Agency is a voluntary health and welfare organization. The following events occur: Arrangements have been made to have a local catering firm
The Elder Citizens Agency is a voluntary health and welfare organization. The following events occur:
Arrangements have been made to have a local catering firm bring in a hot lunch. Senior citizens are charged $0.75 per meal. To date, payments to the catering service are $2,300. Cash collections from the meal program service totaled $900.
It is estimated that 10% of the remaining unrestricted pledges and 5% of the remaining restricted pledges will prove uncollectible.
At the end of the previous year, $10,000 of the balance of the Unrestricted Net Assets had been designated for a special program for handicapped elderly persons. The program was to be conducted during the current year if sufficient support could be generated. The idea was abandoned this year for lack of interest. The governing board authorizes the reclassification of the amount as undesignated.
The Elder Citizens Agency had budgeted $500 per month to rent space to conduct its general activities. A generous citizen permits the agency to occupy equivalent space at a nominal fee of $100 per year. The annual fee is paid, and the appropriate expense for the year is recorded.
Required:
Prepare journal entries to record the events.
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