The following are the 20X2 transactions of the Midwest Heart Association, which has the following funds and fund balances on January 1, 20X2:
Unrestricted net assets ............ $281,000
Temporarily restricted net assets ........ 87,000
Permanently restricted (endowment) net assets . 219,000

1. Had Unrestricted pledges totaling $700,000, of which $150,000 is for 20X3 and uncollectible pledges estimated at 8 percent.
2. Had restricted use grants totaling $150,000.
3. Collected a total of $520,000 of current pledges and wrote off $30,000 of remaining uncollected current pledges.
4. Purchased office equipment for $15,000.
5. Used unrestricted funds to pay the $3,000 mortgage payment due on the buildings.
6. Received interest and dividends of $27,200 on unrestricted investments and $5,400 on temporarily restricted investments. An endowment investment with a recorded value of $5,000 was sold for $6,000, resulting in a realized transaction gain of $1,000. A donor-imposed restriction specified that gains on sales of endowment investments must be maintained in the permanently restricted endowment fund.
7. Recorded and allocated depreciation as follows:
Community services ........... $12,000
Public health education ........... 7,000
Research ................. 10,000
Fund-Raising ................ 15,000
General and administrative ........... 9,000

8. Had other operating costs of the unrestricted current fund:
Community services ............ $250,600
Public health education ............. 100,000
Research ................... 81,000
Fund-Raising ................ 39,000
General and administrative ..........61,000

9. Received clerical services totaling $2,400 donated during the fund drive. These are not part of the expenses reported in item 8. It has been determined that these donated services should be recorded.

Required
a. Prepare journal entries for the transactions in 20X2.
b. Prepare a statement of activities for 20X2.