The Following Are Selected Transactions from Helpers Cooperative Which Uses

question 42

Essay

The following are selected transactions from Helpers Cooperative which uses the restricted fund method. Helpers has an operating fund, a capital fund and an endowment fund:
Pledges amounting to $400,000 were received, of which $80,000 applies to the operations of the following year. It is estimated that 2% of the pledges will be uncollectible.
The association purchased office equipment at a cost of $6,000.
Pledges of $300,000 were collected, while pledges amounting to $4,000 were written off as uncollectible.
A local newspaper agreed to offer Helpers a full-page ad. This had an estimated value of $5,000.
Interest and dividends received amounted to $15,000 on endowment fund investments. These earnings are considered unrestricted.
Depreciation for the year amounted to $40,000.
Required:
Prepare journal entries to record the above transactions. Also, indicate which fund will be used for each entry.

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Definitions:

Bishops

Senior members of the Christian clergy, typically in charge of a diocese and empowered to confer holy orders.

Landowning Families

Families that own significant amounts of land, often holding economic, social, and political power in their communities or countries.

Peasant Labor Obligations

Requirements imposed on peasants in feudal systems to perform labor on their lords' lands or fulfill other duties and payments in kind.

Royal Decrees

Official orders or proclamations issued by a sovereign or government authority, having the force of law.