The Southside Counseling Center was established on January 10, 2016, to provide a variety of counseling services to community residents, including marital and family counseling and treatment for alcoholism and drug abuse. The center's initial resources were provided by a private foundation in the form of a $3,750,000 capital grant. Of this sum, the foundation designated $1,500,000 for building and equipment and $1,125,000 for the establishment of a special program for counseling parolees.

The following transactions occurred during 2016.

1. Contributions of $1,800,000 were received through the local United Way campaign, and an additional $300,000 was received in direct contributions. Of the direct contributions, $30,000 was for the parolees' program and $75,000 was for the building fund; the remaining $195,000, of which $90,000 was in the form of documented pledges expected to be collected within one year, was unrestricted. The pledges are estimated to be 85% collectible. Any bad debt expense is allocated to administrative expense.
2. Out-of-pocket operating expenses for the year were $2,100,000. Of the total, $1,425,000 are program expenses, $525,000 are administrative expenses, and the remainder are fund-raising expenses. $150,000 of the expenses were unpaid at year-end.
3. The special parolees' program had not yet begun as of December 31, 2016. All resources dedicated to this program were invested in short-term securities. Investment income for the year, which was reinvested, was $45,000. There are no unrealized gains or losses on the securities.
4. The center obtained a $3,600,000 mortgage to purchase a building, and obtained a $450,000 3-year note to purchase equipment. The center also used the designated capital grant to finance these purchases; the total cost of the building and equipment was $5,550,000.
5. Interest of $210,000 was accrued and paid on the mortgage and note, all allocated to administrative expense.
6. Depreciation on the building and equipment is $285,000, all allocated to program expenses.

Required

a. Prepare journal entries to record the transactions for 2016.