The following are the 20X2 transactions of the Midwest Heart Association, which has the following funds and fund balances on January 1, 20X2: Unrestricted net assets $ 289,000 Temporarily restricted net assets 82,000 Permanently restricted (endowment) net assets 215,000 1. Had Unrestricted pledges totaling $650,000, of which $245,000 is for 20X3 and uncollectible pledges estimated at 8 percent. 2. Had restricted use grants totaling $200,000. 3. Collected a total of $530,000 of current pledges and wrote off $33,000 of remaining uncollected current pledges. 4. Purchased office equipment for $11,000. 5. Used unrestricted funds to pay the $3,000 mortgage payment due on the buildings. 6. Received interest and dividends of $27,200 on unrestricted investments and $6,000 on temporarily restricted investments. An endowment investment with a recorded value of $5,300 was sold for $6,700, resulting in a realized transaction gain of $1,400. 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 $ 12,800 Public health education 7,200 Research 10,300 Fund-raising 15,000 General and administrative 9,700 8. Had other operating costs of the unrestricted current fund: Community services $ 250,600 Public health education 105,500 Research 82,000 Fund-raising 47,000 General and administrative 70,000 9. Received clerical services totaling $2,900 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.) b. Prepare a statement of activities for 20X2. ReferenceseBook & Resources Journal EntriesDifficulty: 1 EasyLearning Objective: 19-04 Understand financial reporting rules and make basic journal entries for not-for-profit voluntary health and welfare organizations.

PLEASE EXPLAIN HOW THE AMOUNTS ARE CALCULATED.