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

Essay

Assume that The Sandy Creek Nature Center, a private not-for-profit organization, started the fiscal year ending December 31, 2017 with $59,378 in temporarily restricted net assets. The amounts are restricted for the following:
restricted for educational programs relating to preservation of wetlands $18,000.
restricted for future equipment purchases $16,000 Fixed assets are recorded as unrestricted when acquired) and
a promise to provide $5,000 each of the next six years for general support. Assume the pledge was made on December 31, 2016 and the present value of six January 1) payments discounted at 5 percent is $25,378.
During the fiscal year ended December 31, 2017, the following transactions occur:
a) The first $5,000 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 $19,900
c) The $18,000 received in a prior year for equipment, together with an additional $25,500 was used to acquire equipment.
d) Interest of 5% is recorded on the remaining balance of the pledge receivable.
Required: Prepare the journal entries necessary for the above transactions: