You were just hired as an accountant for the recently created not-for-profit entity United Sway (US). US is an NFPO set up for families who have been impacted by the recent forest fires in BC. US is contemplating between the restricted fund and deferral methods of accounting for contributions and needs your help on how to account for certain transactions. Note, USs policy with respect to capital assets is to capitalize and amortize capital assets over their expected useful lives and their year end is November 30, 2020.

The accounting transactions were as follows:

a) US was established on December 1, 2019 when it received its first restricted cash contribution of $200,000. The $200,000 was restricted for purchasing capital assets necessary to deliver services to families. US purchased 4 transportation vehicles for $100,000 and a small lodge to house displaced families for $100,000 ($40,000 of which was for land related to the lodge). The transportation vehicles had estimated useful lives of 10 years and the lodge has an estimated useful life of 20 years. No residual values were noted for the vehicles or lodge. The purchase of the vehicles occurred on March 1, 2020 and the lodge was purchased on April 1, 2020.

b) On December 1, 2019, US received its first pledge of unrestricted donations from a local philanthropist. The pledge was for $100,000 to be received in 4 quarterly payments beginning February 28, 2020.

c) April 15th, 2020, a number of local wealthy families donated marketable securities valued at $50,000 with the condition that the principal amount cannot be spent and the income earned from the investment be spent on operations. A return of 10% was earned and received by year end.

d) On October 1st, 2020, the local food bank donated important supplies to US that were used immediately. The value of the supplies was $5,000.

Required: 1) Using the deferral method of accounting, record all the journal entries required for the above transactions for the year ended November 30, 2020

. 2) Now assume US uses the restricted fund method of accounting and has three funds: operating, capital, and endowment. The capital fund is used to manage the purchase and use of capital assets. Record the journal entries for Part A only.