Prepare journal entries to record the following transactions for a nongovernment ONPO.
1. Unrestricted cash gifts that were received last year but restricted for use in the current year totaled $50,000.
2. Unrestricted pledges of $600,000 were received. Donors specified that $450,000 of this amount was intended to finance current-year operations (even though part of those donations may not be collected until early next year). Ten percent (10%) of pledges typically prove uncollectible.
3. Pledges receivable of $480,000 were collected during the year; $7,000 of pledges were written off as uncollectible.
4. Donations of materials totaled $22,000; $5,000 of the materials were on hand at year end.
5. Membership dues of $400,000 were collected during the year. Members receive only nominal or no benefits in exchange for their dues.
6. Cash gifts to finance specific community outreach projects were received, $30,000.
7. Expenses were incurred for those specific community outreach projects—salaries, $3,000; equipment rental, $15,000. Management decided to pay these costs from unrestricted (rather than restricted) resources.
8. Cash gifts restricted to finance construction of a recreation center were received, $500,000.
An additional amount was pledged and is expected to be collected in full in the next fiscal year, $2,200,000. No construction costs had been incurred by year end.

  • CreatedOctober 25, 2014
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