Journal entries. Super Senior Agency is a VHWO. The following events occurred during the year. The agency uses one control account for its fixed assets, with supporting subsidiary records.
1. Property was purchased for $200,000. A down payment of $40,000 was made from unrestricted cash, and a 14% mortgage was signed for the remainder.
2. Office furniture was purchased for $9,000 on open account.
3. A local corporation donated and installed room partitions. The value of the donated items and services was $14,000. Super Senior’s policy is to release donor restrictions over the useful life of the assets to match depreciation expense.
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