Children’s Agency, a voluntary health and welfare organization, began operations on July 1, 2000. It conducts two programs: a medical services program and a community information services program. This charity had the following transaction during the year ended June 30, 2001:

1. Received the following Contributions:

Unrestricted pledges………………………………………………….. $800,000

Restricted cash……………………………………………………….. 95,000

Building fund pledges………………………………………………... 50,000

Endowment fund cash………………………………………………... 1,000

2. Collected the following pledges:

Unrestricted…………………………………………………………... 450,000

Building fund…………………………………………………………. 20,000

3. Received the following unrestricted cash revenues:

From theater party (net of direct costs)……………………………….. 12,000

Bequests………………………………………………………………. 10,000

Membership dues……………………………………………………... 8,000

Interest and dividends………………………………………………… 5,000

4. Program expenses incurred (vouchers created for these amounts):

Medical services………………………………………………………. 60,000

Community information services……………………………………... 15,000

5. Service expenses incurred (vouchers created for these amounts):

General administration……………………………………………….. 150,000

Fund-raising…………………………………………………………... 200,000

f. Fixed assets purchased with unrestricted cash……………………… 18,000

g. Depreciation of all buildings and equipment in the Land, Buildings, and Equipment Fund was allocated as follows:

Medical services program…………………………………………… 4,000

Community information services program…………………………. 3,000

General administration……………………………………………… 6,000

Fund-raising………………………………………………………… 2,000

h. Paid vouchers payable……………………………………………. 330,000

Required

1. Prepare journal entries for these transactions.
2. Calculate the balances in

• Unrestricted Net Assets
• Temporarily Restricted Net Assets
• Permanently Restricted Net Assets.

Answer rating: 100% (QA)

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