Rapitown Arts Council provides financial support to a number of independent fine-art projects in the city. Data concerning several events follow:
a.
During 20X5, a fund-raising drive yielded $100,000 in cash and $25,000 in pledges.
b.
Based on past experience, 10% of the pledges are estimated to be uncollectible.
c.
A July 4 art fair yielded $20,000 in gross revenue. The proceeds of the fair are considered unrestricted. The cost of the program was $8,000, paid in cash.
d.
$22,000 of the pledges mentioned in part (a) are collected during the year.
e.
The following expenses were paid:
$\begin{array}{lr}
\text { Director's sal ary } & \$ 12,000 \
\text { Rent expense } & 6,000 \
\text { Postage } & 1,500 \
\text { Conference expenses } & 2,000
\end{array}$ Required:
Make the necessary entries to record the transactions.

Question

Rapitown Arts Council provides financial support to a number of independent fine-art projects in the city. Data concerning several events follow:
a.
During 20X5, a fund-raising drive yielded $100,000 in cash and $25,000 in pledges.
b.
Based on past experience, 10% of the pledges are estimated to be uncollectible.
c.
A July 4 art fair yielded $20,000 in gross revenue. The proceeds of the fair are considered unrestricted. The cost of the program was $8,000, paid in cash.
d.
$22,000 of the pledges mentioned in part (a) are collected during the year.
e.
The following expenses were paid:
 $\begin{array}{lr}
\text { Director's sal ary } & \$ 12,000 \
\text { Rent expense } & 6,000 \
\text { Postage } & 1,500 \
\text { Conference expenses } & 2,000
\end{array}$ Required:
Make the necessary entries to record the transactions.

Quizplus · Accepted Answer

The Answer of Rapitown Arts Council provides financial support to a number of independent fine-art projects in the city. Data concerning several events follow:
a.
During 20X5, a fund-raising drive yielded $100,000 in cash and $25,000 in pledges.
b.
Based on past experience, 10% of the pledges are estimated to be uncollectible.
c.
A July 4 art fair yielded $20,000 in gross revenue. The proceeds of the fair are considered unrestricted. The cost of the program was $8,000, paid in cash.
d.
$22,000 of the pledges mentioned in part (a) are collected during the year.
e.
The following expenses were paid:
 $\begin{array}{lr}
\text { Director's sal ary } & \$ 12,000 \
\text { Rent expense } & 6,000 \
\text { Postage } & 1,500 \
\text { Conference expenses } & 2,000
\end{array}$ Required:
Make the necessary entries to record the transactions.

Rapitown Arts Council Provides Financial Support to a Number of Independent