Question

Jefferson Animal Rescue has the following year end trial balance.

	Debits	Credits
Cash	42,350
Pledges Receivable	11,900
Estimated Uncollectible Pledges		3,800
Supplies	2,850
Land, Buildings, and Equipment	46,200
Accumulated Depreciation		25,300
Accounts Payable		3,950
Wages Payable		715
Bank Note Payable		25,000
Net Assets with Donor Restrictions		9,700
Net Assets without Donor Restrictions		14,000
Contribution Revenue with Donor Restrictions		3,600
Contribution Revenue without Donor Restrictions		91,200
Administration Expense	18,250
Fund Raising Expense	2,000
Program Expense-Animal Care	53,715
Reclassification from Net Assets with Donor Restrictions	7,000
Reclassification to Net Assets without Donor Restrictions		7,000
	184,265	184,265

Prepare the appropriate closing entries

Answer 1

Closing entries1.

1. Estimated Uncollectible Pledges A/c Dr. 3,800

To pledges receivables 3,800

(Being provision for uncollectables were set off against the receivables)

2. Supplies A/c Dr. 2,850

To income and expenditure A/c. 2,850

(being revenue Transferred to income and expenditure A/c which is nominal in nature)

3. Accumulated depreciation A/c Dr. 25,300

To LAnd ,Building and equipmet 25,300

(being Provision for accumulated depreciation were written of against asets to arrive WDV of the asset)

4 . Contribution Revenue with Donor Restrictions 3,600

To income and expendtiture A/c 3,600

Note: revenue should be recognised only if the conditions attached to it are met

5 Contribution Revenue without Donor Restrictions 91,200

To income and Expenditure A/c 91,200

6.

   

Administration Expense A/c Dr.	18,250
Fund Raising Expense A/c Dr.	2,000
Program Expense-Animal Care A/c Dr.	53,715

To income Expenditure A/c 73,965