Question

Problem 3. Carleton agency, a VHWO, conducts two programs: medical services and community information services. It had the following transactions during the year ended June 30, 2016:

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 flows 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 (processed through vouchers payable):

Medical services		$60,000
Community information services		15,000

5. Services expenses incurred (processed through vouchers payable):

General administration		$150,000
Fund raising		200,000

6. Purchased fixed assets:

Fixed assets purchased with donor-restricted cash $18,000.

Carleton's policy is to release donor restrictions when assets are placed in service.

7. 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

8. Vouchers paid: Paid vouchers payable $330,000

Instructions Record journal entries for the preceding transactions. Number your journal entries to coincide with the preceding transaction numbers. (AICPA adapted)

Answer 1