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The information below was taken from the records of Geneva Preschool, a private not-for-profit organization, for the year 2018. Geneva Preschool provides free instruction for

The information below was taken from the records of Geneva Preschool, a private not-for-profit organization, for the year 2018. Geneva Preschool provides free instruction for children from low-income families. Its trial balance, January 1, 2018, is as follows:

Debit

Credit

Cash

$ 100,000

Equipment & furnishings, net

1,500,000

Building, net

3,500,000

Accounts payable

$ 200,000

Net assetsunrestricted

3,400,000

Net assetstemporarily restricted

_______

1,500,000

$ 5,100,000

$ 5,100,000

Activities for 2018 are listed below. NOTE: expenses are divided between two categories on the Statement of Activities: programs and administrative.

1. Unrestricted cash contributions were $4,500,000.

2. On January 1, 2018, a donor made a documented promise of $500,000.

3. Each year, Geneva collects donor-restricted contributions to purchase computers and software for educational programs. During 2018, $200,000 was received and $500,000 was spent; $400,000 on computers and $100,000 for software. Geneva capitalizes the computers as equipment and expenses the software.

4. Out-of-pocket operating expenses for the year, not including the software in 3. above, were $4,200,000. The year-end accounts payable balance, all related to operating expenses, was $150,000. Operating expenses are allocated 70% to program services and 30% to administrative services.

5. A licensed CPA did all of Genevas required financial statements and IRS forms for free. Fair value of these services is $25,000, classified as administrative.

6. Depreciation for the year on equipment and furnishings was $250,000. Depreciation on the building was $600,000. All depreciation is split as follows: 50% administrative and 50% program services.

Required: Make the appropriate journal entries to record each of events above.

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