Question: Prepare the general journal entries needed to record the following

Prepare the general journal entries needed to record the following transactions and events in the general ledger accounts of the Valdes Helping Hand Institute, a nongovernment VHWO:
1. Contributions were received as follows:


Experience indicates that 10% of the pledges will prove uncollectible.
2. A building addition was completed at a cost of $1,500,000. The $600,000 received in item 1 was paid the contractor, and the balance is owed on a 5-year, 12% note.
3. Expenditures, all paid, were made as follows:


4. Equipment costing $300,000 was purchased from unrestricted resources.
5. An older piece of equipment—original cost $100,000; accumulated depreciation $65,000—was sold for $40,000. The cash received was unrestricted.
6. A lot and building, estimated fair market value $850,000, were donated to the institute on the condition that they be sold and the proceeds used for Program D, which serves physically and mentally handicapped babies and children.
7. The lot and building (6) sold immediately for $850,000.
8. Investment earnings were accrued and received as follows:


9. A fund-raising bazaar and banquet were held. All $300,000 of gross receipts were unrestricted. Costs incurred—including food, gifts, kitchen help, and waiters—totaled $60,000. Costs would have been higher, but the hotel waived its normal charge ($10,000) and a local supermarket donated food and other merchandise valued at $7,500.
10. To ensure that the babies, young children, and elderly clients are receiving proper medical attention, a local doctor gives each a thorough physical examination annually. He refuses to accept payment for his services, conservatively valued at $30,000. Similarly, a clinical psychologist ensures that each client is properly tested (e.g., intelligence, aptitudes, and progress) on a timely basis. His time would be conservatively valued at $15,000 if he accepted payment. Both the doctor and the psychologist have assigned duties, keep regular hours, maintain case records on each child, and call to the attention of institute staff members each child’s status, potential, and psychological or medical needs. Both spend their time approximately 30% on Program A clients, 20% on Program B clients, and 25% each on Program C and D clients.
11. The family that donated the lot and building (in item 6) also donated land and a small building adjacent to the institute offices for use as an infant nursery and playground. The land and building are conservatively appraised at:
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $100,000
Building . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 250,000
  $350,000
However, there is a 6%, $50,000 mortgage note payable on the building, which the instituteassumed.


$1.99
Sales4
Views235
Comments
  • CreatedOctober 25, 2014
  • Files Included
Post your question
5000