Question: Super Senior Agency is a VHWO The following events occurred

Super Senior Agency is a VHWO. The following events occurred during the year. The agency uses one control account for its fixed assets, with supporting subsidiary records.
1. Property was purchased for $200,000. A down payment of $40,000 was made from unrestricted cash, and a 14% mortgage was signed for the remainder.
2. Office furniture was purchased for $9,000 on open account.
3. A local corporation donated and installed room partitions. The value of the donated items and services was $14,000. Super Senior’s policy is to release donor restrictions over the useful life of the assets to match depreciation expense.
4. At year-end, a payment was made covering mortgage interest for one year, plus a $10,000 payment on the principal.
5. Office equipment costing $3,000, with a book value of $1,000, was sold for $1,800 cash. The gain is unrestricted.
6. Fully depreciated equipment costing $7,000 was written off. There was no scrap value.
7. A depreciation schedule was prepared, showing annual depreciation expense of $46,000, which was recorded. Depreciation of $20,000 was for equipment donated or purchased with donated cash.
8. Two years ago, the will of an agency volunteer granted $75,000 for the acquisition and installation of theater equipment, providing the organization acquired a new building. The amount now was expended in accordance with the stipulations of the will, and payment of $75,000 was made.
9. The account payable of $9,000 mentioned in item (2) was paid.
Prepare journal entries to record the preceding events.

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  • CreatedApril 13, 2015
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