The Appalachian Audubon Society has a $5 million permanent endowment contributed by an enthusiastic bird watcher. Investment income and realized and unrealized gains and losses are donor-restricted for programs for the protection of blue-winged warblers. During the year, dividends and interest received in cash on endowment investments totaled $100,000, and unrealized gains on investments were $25,000. Endowment income spent on warbler programs totaled $97,000. These costs included $4,000 in depreciation on facilities used. Cash paid for the programs was $92,000.
Required
Prepare journal entries to record the events described for the current year. If an account affects net assets, indicate which category of net assets is affected.

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The Answer of The Appalachian Audubon Society has a $5 million permanent endowment contributed by an enthusiastic bird watcher. Investment income and realized and unrealized gains and losses are donor-restricted for programs for the protection of blue-winged warblers. During the year, dividends and interest received in cash on endowment investments totaled $100,000, and unrealized gains on investments were $25,000. Endowment income spent on warbler programs totaled $97,000. These costs included $4,000 in depreciation on facilities used. Cash paid for the programs was $92,000.
Required
Prepare journal entries to record the events described for the current year. If an account affects net assets, indicate which category of net assets is affected.

The Appalachian Audubon Society Has a $5 Million Permanent Endowment