The Chase Private School follows FASB standards of accounting and reporting. Record journal entries for the following transactions during the year ended June 30, 2015.
Cash contributions were received as follows: (a) $1,312 for any purpose desired by the school, (b) $495 for salary supplements for school faculty, (c) $300 to be used during the next fiscal year in any manner desired by the school, (d) $600 for the construction of a new auditorium, and (e) $400 to be invested permanently, with the income to be used as desired by the school. The school’s policy is to record all restricted gifts as temporarily restricted and then reclassify when the restriction is lifted.
The school expended $400 of the $1,312 mentioned in 1(a) for school furniture. Record the plant as unrestricted.
The school expended the $475 for salary supplements as directed by the donor in 1(b).
$725 was expended for the construction of the new auditorium. School policy is to record all plant as unrestricted.
The $400 mentioned in 1(e) was invested permanently, as directed by the donor, and in the year ended June 30, 2015, the school received interest of $11.5, none of which was expended.
What is the journal entries for the following transactions during the year ended June 30, 2015?