Assume that The Sandy Creek Nature Center,a private not-for-profit organization,started the fiscal year ending December 31,2012 with $55,543 in temporarily restricted net assets.The amounts are restricted for the following:
● restricted for educational programs relating to preservation of wetlands $15,240.
● restricted for future equipment purchases $20,000 (Fixed assets are recorded as unrestricted when acquired)and
● a promise to provide $4,000 each of the next six years for general support.Assume the pledge was made on December 31,2011 and the present value of six (January 1)payments discounted at 5 percent is $20,303.
During the fiscal year ended December 31,2012,the following transactions occur:
(a)The first $4,000 installment on the pledge receivable was received.
(b)Expenses related to educational programs on conservation of wetlands were incurred and paid in the amount of $11,250.
(c)The $20,000 received in a prior year for equipment,together with an additional $25,500 was used to acquire equipment.
(d)Interest of 6% is recorded on the remaining balance of the pledge receivable.
Required:
Prepare the journal entries necessary for the above transactions:

Question

Assume that The Sandy Creek Nature Center,a private not-for-profit organization,started the fiscal year ending December 31,2012 with $55,543 in temporarily restricted net assets.The amounts are restricted for the following:
● restricted for educational programs relating to preservation of wetlands $15,240.
● restricted for future equipment purchases $20,000 (Fixed assets are recorded as unrestricted when acquired)and
● a promise to provide $4,000 each of the next six years for general support.Assume the pledge was made on December 31,2011 and the present value of six (January 1)payments discounted at 5 percent is $20,303.
During the fiscal year ended December 31,2012,the following transactions occur:
(a)The first $4,000 installment on the pledge receivable was received.
(b)Expenses related to educational programs on conservation of wetlands were incurred and paid in the amount of $11,250.
(c)The $20,000 received in a prior year for equipment,together with an additional $25,500 was used to acquire equipment.
(d)Interest of 6% is recorded on the remaining balance of the pledge receivable.
Required:
 Prepare the journal entries necessary for the above transactions:

Quizplus · Accepted Answer

The Answer of Assume that The Sandy Creek Nature Center,a private not-for-profit organization,started the fiscal year ending December 31,2012 with $55,543 in temporarily restricted net assets.The amounts are restricted for the following:
● restricted for educational programs relating to preservation of wetlands $15,240.
● restricted for future equipment purchases $20,000 (Fixed assets are recorded as unrestricted when acquired)and
● a promise to provide $4,000 each of the next six years for general support.Assume the pledge was made on December 31,2011 and the present value of six (January 1)payments discounted at 5 percent is $20,303.
During the fiscal year ended December 31,2012,the following transactions occur:
(a)The first $4,000 installment on the pledge receivable was received.
(b)Expenses related to educational programs on conservation of wetlands were incurred and paid in the amount of $11,250.
(c)The $20,000 received in a prior year for equipment,together with an additional $25,500 was used to acquire equipment.
(d)Interest of 6% is recorded on the remaining balance of the pledge receivable.
Required:
 Prepare the journal entries necessary for the above transactions:

Assume That the Sandy Creek Nature Center,a Private Not-For-Profit Organization,started