Allocation of expenses, journal entries. Outreach Clinic, a VHWO, conducts two programs: Alcohol…

Allocation of expenses, journal entries. Outreach Clinic, a VHWO, conducts two programs: Alcohol and Drug Abuse and Outreach to Teens. It has the typical supporting services of management and fund raising. Expense accounts from the preallocation trial balances as of December 31, 2019, are as follows:

In preparation for the allocation of expenses to programs and supporting services, a study was conducted to determine an equitable manner for assigning each expense. The study resulted in the following table for percentage allocations:

1. Using a total of allocable expenses financed by donor-restricted resources, prepare a journal entry to assign those expenses to the programs.


2. With the following format, prepare a schedule to show the assignment of the allocable expenses financed by unrestricted resources to the various programs and supporting services, using the percentages provided by the problem.

3. Using the schedule from part (2), prepare a journal entry to record the allocation and closing of expenses financed by unrestricted resources.

4. Prepare a journal entry to assign plant-related expenses to programs and support services.

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