The Shannon Community Kitchen provides hot meals to homeless and low-income individuals and families; it is the organization's only program. It is the policy of the kitchen to use restricted resources for which the purpose has been met before resources without donor restrictions. The Kitchen had the following revenue and expense transactions during the 2023 fiscal year. 1. Cash donations without donor restrictions of $26,200 were received. A philanthropist also contributed $4,200, which was to be used for the purchase of Thanksgiving dinner foodstuffs. 2. A local grocery store provided fresh produce with a fair value of $1,300. The produce was immediately used. 3. Volunteers from the local university contributed 160 hours to preparation and serving of meals. The estimated fair value of their labor was $1,950. 4. The Kitchen received a $6,200 federal grant for the purchase of institutional kitchen appliances. 5. A local foundation gave the Kitchen $7,200 to support serving hot meals next year. The money is to be returned to the foundation if the Kitchen does not serve at least 5,200 meals next year. 6. At Thanksgiving time, the Kitchen spent $5,300 on foodstuffs for preparation of the Thanksgiving dinner. Required Prepare journal entries to record these transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
The Shannon Community Kitchen provides hot meals to homeless and low-income individuals and families; it is the organization's only program. It is the policy of the kitchen to use restricted resources for which the purpose has been met before resources without donor restrictions. The Kitchen had the following revenue and expense transactions during the 2023 fiscal year. 1. Cash donations without donor restrictions of $26,200 were received. A philanthropist also contributed $4,200, which was to be used for the purchase of Thanksgiving dinner foodstuffs. 2. A local grocery store provided fresh produce with a fair value of $1,300. The produce was immediately used. 3. Volunteers from the local university contributed 160 hours to preparation and serving of meals. The estimated fair value of their labor was $1,950. 4. The Kitchen received a $6,200 federal grant for the purchase of institutional kitchen appliances. 5. A local foundation gave the Kitchen $7,200 to support serving hot meals next year. The money is to be returned to the foundation if the Kitchen does not serve at least 5,200 meals next year. 6. At Thanksgiving time, the Kitchen spent $5,300 on foodstuffs for preparation of the Thanksgiving dinner. Required Prepare journal entries to record these transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Chapter23: Exempt Entities
Section: Chapter Questions
Problem 27P
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Transcribed Image Text:The Shannon Community Kitchen provides hot meals to homeless and low-income
individuals and families; it is the organization's only program. It is the policy of the
kitchen to use restricted resources for which the purpose has been met before
resources without donor restrictions. The Kitchen had the following revenue and
expense transactions during the 2023 fiscal year.
1. Cash donations without donor restrictions of $26,200 were received. A
philanthropist also contributed $4,200, which was to be used for the purchase of
Thanksgiving dinner foodstuffs.
2. A local grocery store provided fresh produce with a fair value of $1,300. The
produce was immediately used.
3. Volunteers from the local university contributed 160 hours to preparation and
serving of meals. The estimated fair value of their labor was $1,950.
4. The Kitchen received a $6,200 federal grant for the purchase of institutional
kitchen appliances.
5. A local foundation gave the Kitchen $7,200 to support serving hot meals next year.
The money is to be returned to the foundation if the Kitchen does not serve at
least 5,200 meals next year.
6. At Thanksgiving time, the Kitchen spent $5,300 on foodstuffs for preparation of
the Thanksgiving dinner.
Required
Prepare journal entries to record these transactions. (If no entry is required for a
transaction/event, select "No Journal Entry Required" in the first account field.)
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