Following Are Four Independent Transactions or Events That Relate to a Voluntary

question 87

Essay

Following are four independent transactions or events that relate to a voluntary health and welfare organization:
1.Cash disbursement of $45,000 was made from the general fund's unrestricted assets for the purchase of new equipment for the organization.
2.The organization receives an unrestricted cash gift of $80,000 from a donor.
3.Common stock investments with a total carrying value of $100,000 were sold by a permanently restricted endowment fund for $112,000 before any dividends were earned on these stocks.The gain is donor-restricted to remain in the fund with donor restrictions.
4.General obligation bonds payable with a face amount of $750,000 were sold at par,with the proceeds required to be used solely for construction of a new building.This building was completed at a total cost of $750,000,and the total amount of bond issue proceeds was disbursed toward this cost.Disregard interest capitalization.
Required:
For each of these transactions or events,prepare journal entries specifying the affected funds and showing how these transactions or events should be recorded by the organization.

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Definitions:

Hypokalemia

A condition characterized by lower-than-normal levels of potassium in the bloodstream.

Mineral Oil Laxatives

A type of laxative made from mineral oil, used to ease bowel movements by coating stool and preventing water from being absorbed by the colon.

Nutrients Absorbed

The process by which the body takes in and utilizes vitamins, minerals, and other nutritional substances.

Digestive Tract

The series of hollow organs joined in a long, twisting tube from the mouth to the anus, through which food is digested and nutrients are absorbed.