The American Research Council of Humanity (ARCH) had the following financial events during the current year.
1. January 12. Received a $ 300,000 payment from a pledge made last year.
2. February 4. Placed an order for new cubicle partitions with five-year useful lives, for $15,000. ARCH uses straight-line depreciation. Payment was not yet made, and the partitions have not yet been delivered.
3. March 1. Paid out a $50,000 grant to the Governmental Archeological Research Committee for History (GARCH). This was a new grant made in the current fiscal year.
4. May 29. Paid a $5,000 deposit for the partitions ordered on February 4.
5. June 12. Collected $80,000 in new donations.
6. September 1. ARCH bought $60,000 of books it has sponsored in the past to sell in its online bookstore. They paid half now, and still owe the other half, to be paid at the end of the year. ARCH has budgeted to sell the books for $ 100,000 total.
7. October 15. The partitions ordered on February 4 arrived, and ARCH paid for the balance owed.
8. November 10. ARCH borrowed $75,000 from it bank on a note payable.
9. December 5. ARCH repaid $25,000 on the note payable, and also $ 3,000 in interest expenses.
10. December 28. ARCH paid its employees $75,000 of wages in cash for the year, $ 70,000 of which was for the current year and $5,000 of which was for the outstanding balance owed. Employees earned $ 90,000 in wages for the year.
11. December 31. Book sales from the Internet book-store totaled $ 110,000, and the cost of the books sold was $58,000. ARCH has not collected $12,000 of the sales. The balance owed for the inventory was paid.
12. ARCH expects that of the $ 12,000 not collected to date, it will collect $ 10,000.
13. December 31. Depreciation on ARCH’s building for the year is $ 40,000. Record these transactions and any other required adjusting entries by showing their impact on the fundamental equation of accounting or journal entries.