The Southside Counseling Center was established on January 10, 2013, to provide a variety of…

The Southside Counseling Center was established on January 10, 2013, to provide a variety of counseling services to community residents, including marital and family counseling and treatment for alcoholism and drug abuse. The center s initial resources were provided by a private foundation in the form of a $1,000,000 capital grant. Of this sum, the foundation designated $500,000 for building and equipment and $250,000 for the establishment of a special program for counseling parolees. The following transactions occurred during 2013: 1. Contributions of $800,000 were received through the local United Way campaign, and an additional $130,000 was received in direct contributions. Of the direct contributions, $10,000 was for the parolees program and $30,000 was for the building fund; the remaining $90,000, of which $40,000 was in the form of pledges, expected to be 75 percent collectible, was unrestricted. 2. Operating expenses for the year were $930,000, of which $850,000 had been paid by year-end. 3. The special parolees program had not yet begun as of December 31, 2013. All resources dedicated to this program were invested in short-term securities. Investment income for the year, which was reinvested, was $20,000. 4. The center purchased a building for $2,200,000 ($1,800,000 is owed on the mortgage at year-end) and equipment for $240,000, of which $140,000 is owed on a three-year note. The initial $500,000 capital grant was used. Required a. Prepare journal entri

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