The following are the 20X2 transactions of the Midwest Heart Association, which has the following funds and fund balances on January 1, 20X2:

Net assets without donor restrictions	$	283,000
Net assets with donor restrictions		311,000

1. Had Unrestricted pledges totaling $766,000, of which $195,000 is for 20X3 and uncollectible pledges estimated at 8 percent.
2. Had restricted use grants totaling $200,000.
3. Collected a total of $536,000 of current pledges and wrote off $35,000 of remaining uncollected current pledges.
4. Purchased office equipment for $13,000.
5. Used unrestricted funds to pay the $3,500 mortgage payment due on the buildings.
6. Received interest and dividends of $28,600 on unrestricted investments and $5,500 on temporarily restricted investments. An endowment investment with a recorded value of $5,400 was sold for $7,100, resulting in a realized transaction gain of $1,700. A donor-imposed restriction specified that gains on sales of endowment investments must be maintained in the permanently restricted endowment fund.
7. Recorded and allocated depreciation as follows:

Community services	$	12,100
Public health education		7,600
Research		10,100
Fund-raising		15,400
General and administrative		9,600

1. Had other operating costs of the current fund Net assets with donor restrictions:

Community services	$	251,000
Public health education		104,500
Research		87,000
Fund-raising		47,000
General and administrative		69,000

1. Received clerical services totaling $2,800 donated during the fund drive. These are not part of the expenses reported in item 8. It has been determined that these donated services should be recorded.

Required: a. Prepare journal entries for the transactions in 20X2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

• Record the unrestricted pledges and estimated uncollectible pledges.
• Record the restricted use grants.
• Record the pledges collected.
• Record the write-off of the uncollected pledges.
• Record the purchase of office equipment.
• Record the unrestricted funds used to pay the mortgage payments.
• Record the investment income.
• Record the gain on the sale of the investment.
• Record the depreciation allocations.
• Record the operating costs.
• Record the fund-raising expenses against the donated services.

b. Prepare a statement of activities for 20X2.

View transaction list Journal entry worksheet Record the unrestricted pledges and estimated uncollectible pledges. Note: Enter debits before credits. Transaction General Journal Debit Credit 01 Record entry Clear entry View general journal MIDWEST HEART ASSOCIATION Statement of Activities For the Year Ended December 31, 20X2 Without Donor Restrictions Revenues, gains, and other support: With Donor Restrictions Total Total revenues, gains and other support Program services and support: Program services: Total program services Supporting services Total supporting services Total expenses Net assets at beginning of year Net assets at end of year