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     46.     (Journal entries using funds)

Inner City Compassion, Inc. (ICC) solicits donations to provide shelter and counseling to abused people of all ages.It also sponsors research into the causes of abuse. To account for its activities, ICC uses an unrestricted current fund (UCF), a restricted current fund (RCF), an endowment fund (EF), and a land, building, and equipment fund (LBEF). In accordance with its accounting policies, all program expenses are recorded in the UCF. Make journal entries to record the following transactions, and identify the fund in which the entry is recorded.
          a.     ICC receives cash contributions of $150,000 and pledges of $100,000, to be used for any purpose approved by the trustees. Based on past experience, the trustees expect to collect 90% of the pledges.
          b.     ICC receives the following donations in cash, each for certain specific purposes:
                    (1)     $25,000, which must be used only for sheltering abused wives;
                    (2)     $100,000, the principal of which (and all investment gains or losses) must be held in perpetuity; and the income must be used only for research purposes; and
                    (3)     $50,000, which must be used (together with any income its investment generates) for acquisition of buildings and equipment.
          c.     ICC invests the $100,000 contribution from transaction b(2) in equity securities.
          d.     ICC collects $87,000 in cash from the pledges made in transaction a. and writes off the remaining $13,000 of pledges as uncollectible.
          e.     ICC spends $30,000 in cash on the youth counseling program.
          f.     ICC spends $20,000 of the donation received in b(1) for sheltering abused wives.
          g.     At year-end, the $100,000 investment in transaction c. has a fair value of $104,000.
          h.     E. Floria, a professional psychiatrist, donates 20 days of her time in counseling youth under an ICC program. Had she not donated time, ICC would have spent $800 a day for these services.
          i.     M. Howard sends ICC a letter, stating that he will make a cash donation next year of $25,000, provided ICC raises at least $50,000 in next-year's fund-raising campaign.


          j.     E. Elias sends ICC $5,000, stipulating that it must be used for next year's programs.
          k.     Dividends of $2,000 are received on the investments in transaction c. [See also b(2)]

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