The Evangelical Private School follows FASB standards of accounting and reporting. 1. Cash contributions were received as follows: (a) $985,000 for any purpose desired by the school, (b) $313,500 designated by donors for salary supplements for school faculty. (c) $427,000 designated by donors to be used during the next fiscal year in any manner desired by the school, (d) $578.000 designated by donors for the construction of a new auditorium, and (e) $422,000 designated by donors to be invested permanently, with the income to be used as desired by the school. The school's policy is to record all restricted gifts as with donor restrictions and then reclassify when the restriction is lifted. 2. The school expended $360,000 of the $985,000 mentioned in 1(e) for school furniture. 3. The school expended the $292,150 for salary supplements as directed by the donor in 1(b) 4. The $427,000 in 1(c) was retained for use next year, as directed by the donor. 5. $758,000 was expended for the construction of the new auditorium. 6. The $422,000 mentioned in 1(e) was invested permanently, as directed by the donor, and in the year ended June 30, 2020, the school received interest of $20,045, none of which was expended. Record journal entries for the above transactions during the year ended June 30, 2020. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction let Journal entry worksheet < 3 5 8 8 13 ***** Record the entry for cash contributions received without donor restrictions. Note: Enter debits before credits. Transaction General Journal Debit Credit 1a Cash Contributions without Donar Restrictions Journal entry worksheet < 2 3 5 6 8 Record the entry for designated cash contributions by donors for salary supplements for school faculty. Note: Enter debits before credits. Transaction General Journal Debit Credit 16 Cash Contributions with Danor Restrictions Journal entry worksheet < 2 3 5 7 8 ***** Record the entry for designated cash contributions by donors to be used during the next fiscal year in any manner desired by the school. Note: Enter debits before credits. Transaction General Journal Debit Credit 10 Cash Contributions with Danor Restrictions 13 Journal entry worksheet < 2 3 7 ***** Record the entry for designated cash contributions by donors for the construction of a new auditorium. Note: Enter debits before credits. Traneaction General Journal Debit 1d Cash Contributions with Dance Restfictions Credit 13 Journal entry worksheet < 2 3 5 6 7 13 ***** Record the entry for cash contributions to be invested permanently, as directed by the donor. Note: Enter debits before credits. Transaction General Journal Debit Credit te Cash 1 Contributions with Danor Restrictions DO 2 7 Record the entry for cash purchase of school furniture. Note: Enter debits before credits. Transaction General Journal 02 Furniture and Equipment Cash 52 CO 6 8 Debit Journal entry worksheet < 2 5 Record the entry for payment of salary. Note: Enter debits before credits. Transaction 6 General Journal Education Program Expense: Salary Supplement Expense 7 Debit Credit Journal entry worksheet 2 3 5 6 8 13 RE Record the entry for reclassification of net assets as the salary payment was made to the school faculty. Note: Enter debits before credits Transaction General Journal Debit Credit 3b Reclassification from Net Assets with Donor Restrictions for Satisfaction of Program Restrictions Retiassification to Nel Assets without Donor Restrictions for Satisfaction of Program Restrictions > Journal entry worksheet < 5 7 8 9 10 ***** ***** Record $758,000 that was expended for the construction of the new auditorium. Note: Enter debits before credits. Transaction General Journal Debit 5a Cash 13 Credit Journal entry worksheet 1 18 7 8 9 ***** 10 11 Record the entry for reclassification of net assets as the new auditorium is constructed. Note: Enter debits before credits. Transaction General Journal Debit Credit 5b Reclassification from Net Assets with Donar Restrictions for Satisfaction of Program Restrictions Reclassification to Net Assets without Donor Restrictions for Satisfaction of Program Restrictions Journal entry worksheet < 1 6 7 8 9 ***** Record the entry for cash paid for investments. Note: Enter debits before credits. Transaction General Journal Investments Cash 10 12 Credit Journal entry worksheet < 1 6 7 8 9 TR Record the entry for receipt of interest income. Note: Enter debits before credits. Transaction General Journal 6b Interest Revenue without Donor Restrictions 10 Debit 12 The Evangelical Private School follows FASB standards of accounting and reporting. 1. Cash contributions were received as follows: (a) $985,000 for any purpose desired by the school, (b) $313,500 designated by donors for salary supplements for school faculty. (c) $427,000 designated by donors to be used during the next fiscal year in any manner desired by the school, (d) $578.000 designated by donors for the construction of a new auditorium, and (e) $422,000 designated by donors to be invested permanently, with the income to be used as desired by the school. The school's policy is to record all restricted gifts as with donor restrictions and then reclassify when the restriction is lifted. 2. The school expended $360,000 of the $985,000 mentioned in 1(e) for school furniture. 3. The school expended the $292,150 for salary supplements as directed by the donor in 1(b) 4. The $427,000 in 1(c) was retained for use next year, as directed by the donor. 5. $758,000 was expended for the construction of the new auditorium. 6. The $422,000 mentioned in 1(e) was invested permanently, as directed by the donor, and in the year ended June 30, 2020, the school received interest of $20,045, none of which was expended. Record journal entries for the above transactions during the year ended June 30, 2020. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction let Journal entry worksheet < 3 5 8 8 13 ***** Record the entry for cash contributions received without donor restrictions. Note: Enter debits before credits. Transaction General Journal Debit Credit 1a Cash Contributions without Donar Restrictions Journal entry worksheet < 2 3 5 6 8 Record the entry for designated cash contributions by donors for salary supplements for school faculty. Note: Enter debits before credits. Transaction General Journal Debit Credit 16 Cash Contributions with Danor Restrictions Journal entry worksheet < 2 3 5 7 8 ***** Record the entry for designated cash contributions by donors to be used during the next fiscal year in any manner desired by the school. Note: Enter debits before credits. Transaction General Journal Debit Credit 10 Cash Contributions with Danor Restrictions 13 Journal entry worksheet < 2 3 7 ***** Record the entry for designated cash contributions by donors for the construction of a new auditorium. Note: Enter debits before credits. Traneaction General Journal Debit 1d Cash Contributions with Dance Restfictions Credit 13 Journal entry worksheet < 2 3 5 6 7 13 ***** Record the entry for cash contributions to be invested permanently, as directed by the donor. Note: Enter debits before credits. Transaction General Journal Debit Credit te Cash 1 Contributions with Danor Restrictions DO 2 7 Record the entry for cash purchase of school furniture. Note: Enter debits before credits. Transaction General Journal 02 Furniture and Equipment Cash 52 CO 6 8 Debit Journal entry worksheet < 2 5 Record the entry for payment of salary. Note: Enter debits before credits. Transaction 6 General Journal Education Program Expense: Salary Supplement Expense 7 Debit Credit Journal entry worksheet 2 3 5 6 8 13 RE Record the entry for reclassification of net assets as the salary payment was made to the school faculty. Note: Enter debits before credits Transaction General Journal Debit Credit 3b Reclassification from Net Assets with Donor Restrictions for Satisfaction of Program Restrictions Retiassification to Nel Assets without Donor Restrictions for Satisfaction of Program Restrictions > Journal entry worksheet < 5 7 8 9 10 ***** ***** Record $758,000 that was expended for the construction of the new auditorium. Note: Enter debits before credits. Transaction General Journal Debit 5a Cash 13 Credit Journal entry worksheet 1 18 7 8 9 ***** 10 11 Record the entry for reclassification of net assets as the new auditorium is constructed. Note: Enter debits before credits. Transaction General Journal Debit Credit 5b Reclassification from Net Assets with Donar Restrictions for Satisfaction of Program Restrictions Reclassification to Net Assets without Donor Restrictions for Satisfaction of Program Restrictions Journal entry worksheet < 1 6 7 8 9 ***** Record the entry for cash paid for investments. Note: Enter debits before credits. Transaction General Journal Investments Cash 10 12 Credit Journal entry worksheet < 1 6 7 8 9 TR Record the entry for receipt of interest income. Note: Enter debits before credits. Transaction General Journal 6b Interest Revenue without Donor Restrictions 10 Debit 12