A VHWO had the following transactions affecting its operations for the year Requ

Question

A VHWO had the following transactions affecting its operations for the year

Required:(1)For each of the above transactions, indicate which net asset classifications would be affected by the transaction.

(2)For each of the abocve transactions, prepare the general journal entry, in proper form, to record the transaction. Omit explanations. Use the letter of entry as the date.

(1) The organization received unretricted pledges for $520,000. Of this amount, $500,000 is expected to be collected 2 An individual gave the organization securities with a fair market value of $1 million. The gift provided that the principal must remain intact while the income may be spent for any purpose the board of trystees approves. 3 Unrestricted contributions that were designated by donors for use in the following year were received in cash. These contributions totaled $73,000. 4 Salaries of employees involved in performing services for the organization amounted to $85,000 and were paid in cash during the year

Explanation / Answer

The organization received unretricted pledges for $520,000. Of this amount, $500,000 is expected to be collected- $500000, will affect Unrestricted Net Assets

                                         Pledges Non Current DR                     500000

                                           To Pledge Revenue                                            500000

An individual gave the organization securities with a fair market value of $1 million. The gift provided that the principal must remain intact while the income may be spent for any purpose the board of trystees approves.-Restricted Net Assets will be affected

                                       Securirties      DR              1M

                                            To Gift Received                             1M

Unrestricted contributions that were designated by donors for use in the following year were received in cash. These contributions totaled $73,000.- Unrestricted Net Assets.

   

                                        Cash              DR             73000

                                             To Contributions                             73000

Salaries of employees involved in performing services for the organization amounted to $85,000 and were paid in cash during the year-It will affest Unrestricted Net Assets

                                  Employees Salary              85000

                                            To Cash                                    85000

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