(a) Prepare journal entries to record the following transactions for a nongovernment not-for-profit organization.
1. Purchased equipment from unrestricted resources at a cost of $30,000. Cash was paid.
2. Depreciation on the equipment was $12,000 for the year.
3. Sold the equipment for $20,000 when its book value was $18,000. Received cash (no restrictions).
(b) What are the effects of Transactions 1 through 3 on the three classes of net assets?