The following events are for the Public Health Agency, a voluntary health and welfare organization that conducts two programs: public health research and public health education:

a.The agency received a donation of capital stock with a market value of $200,000, with the stipulation that the income and principal may be used only for additions to plant.

b.An adjoining building and land were purchased at a cost of $600,000.A 10% cash down payment was made.A mortgage note for the remainder was signed.

c.Unused sterilizers with a cost of $15,000 and a book value of $5,000 were sold for $3,000 cash.

d.New sterilizers costing $28,000 were purchased.

e.A payment of $90,000 was made to cover semiannual mortgage interest of $20,000 and reduction of principal of $70,000.
f.Annual depreciation of $180,000 was recorded.g.The directors approved the following percentages for allocating all expenses (but not losses):
Public health research program 30%
Public health education program 40%
Management and general services 10%
Fund-raising services 20%
Total 100%
Required:
Prepare the journal entries for the events.

Question

The following events are for the Public Health Agency, a voluntary health and welfare organization that conducts two programs: public health research and public health education:
​
a.The agency received a donation of capital stock with a market value of $200,000, with the stipulation that the income and principal may be used only for additions to plant.​
​
b.An adjoining building and land were purchased at a cost of $600,000.A 10% cash down payment was made.A mortgage note for the remainder was signed.​
​
c.Unused sterilizers with a cost of $15,000 and a book value of $5,000 were sold for $3,000 cash.​
​
d.New sterilizers costing $28,000 were purchased.​
​
e.A payment of $90,000 was made to cover semiannual mortgage interest of $20,000 and reduction of principal of $70,000.​
​f.Annual depreciation of $180,000 was recorded.g.The directors approved the following percentages for allocating all expenses (but not losses):
Public health research program 30%
Public health education program 40%
Management and general services 10%
Fund-raising services 20%
 Total 100%
Required:
Prepare the journal entries for the events.

Quizplus · Accepted Answer

The Answer of The following events are for the Public Health Agency, a voluntary health and welfare organization that conducts two programs: public health research and public health education:
​
a.The agency received a donation of capital stock with a market value of $200,000, with the stipulation that the income and principal may be used only for additions to plant.​
​
b.An adjoining building and land were purchased at a cost of $600,000.A 10% cash down payment was made.A mortgage note for the remainder was signed.​
​
c.Unused sterilizers with a cost of $15,000 and a book value of $5,000 were sold for $3,000 cash.​
​
d.New sterilizers costing $28,000 were purchased.​
​
e.A payment of $90,000 was made to cover semiannual mortgage interest of $20,000 and reduction of principal of $70,000.​
​f.Annual depreciation of $180,000 was recorded.g.The directors approved the following percentages for allocating all expenses (but not losses):
Public health research program 30%
Public health education program 40%
Management and general services 10%
Fund-raising services 20%
 Total 100%
Required:
Prepare the journal entries for the events.

The Following Events Are for the Public Health Agency, a Voluntary