Enviroclean is a not-for-profit organization formed on January 1, 2010. The organization's motto is "clean your environment." Enviroclean was formed to help people and organizations that want to clean up their local environments. The organization is funded largely by the municipal government and private donations through funds, goods, and services. Enviroclean is involved in training volunteers, raising awareness of cleanup requirements in the local communities, and working with schools and clubs to undertake cleanup programs. They are well known for the annual downtown cleanup after the winter. During 2013, the following transactions occurred:
1. Enviroclean was awarded a grant of $1 million from the municipal government for annual operations. This is a grant that has been received each year. The first installment, $500,000, was received immediately and the other half will be received on January 1, 2014. In order to receive the second installment, Enviroclean must show that it spent the $500,000 in pursuit of its mission by September 30, 2013. Enviroclean has been able meet the requirements in the past.
2. Enviroclean started a new program in 2013. It launched a contest among local high schools challenging them to improve the environmental footprint of their respective schools. Enviroclean's board of directors committed $100,000 to this initiative from the general fund. Enviroclean also raised $50,000 through private donations. There were 10 schools involved in the contest. Each school was given $10,000 to create the program and the winner was given another $5,000. Enviroclean also agreed to purchase any required supplies and provide volunteer supervisors when necessary. The supplies used cost $13,000 and the volunteer time was calculated as 25 hours at $12.00 per hour.
3. Enviroclean paid salaries of $50,000 for office personnel during the year, $30,000 for a fundraiser hired to raise funds for endowments and yearly operations, and $75,000 for the executive director. The office personnel and the fundraiser spent 20% of their time this year on the new contest.
4. Enviroclean held its annual winter cleanup. It incurred costs of $40,000 and raised $50,000 in donations. The contributions on these winter cleanups are restricted by the donors for the annual cleanup project.
5. The annual campaign, which began in September and ended in December, yielded pledges of $52,000, of which
$34,000 had been collected by year end.
6. The Enviroclean fundraiser secured a major endowment of $120,000 on June 1, 2013, from a corporate foundation. The interest on the endowment can be used at Enviroclean's discretion. The funds were invested in govern ment bonds. The bonds pay an annual interest of 4%.
7. Enviroclean uses fund accounting and is required to create separate funds for capital assets, endowments, the annual winter cleanup, and the school cleanup project.
Required
Prepare the journal entries that Enviroclean would make during 2013.