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.

Answer rating: 100% (QA)

Midwest Heart Association Journal entries for the transactions in 20X... View the full answer