Following are four independent transactions or events that relate to a local government and a voluntary health and welfare organization:
1. Made a disbursement of $25,000 from the general fund unrestricted assets for the cash purchase of new equipment.
2. Received an unrestricted cash gift of $100,000 from a donor.
3. Sold investments in common stocks with a total carrying value of $50,000 of a permanently restricted endowment fund for $55,000 before any dividends were earned on them. The donor restricted his gain to remain in the permanently restricted fund.
4. Sold general obligation bonds payable with a face amount of $1,000,000 at par with the proceeds required to be used for construction of a new building. This building was completed at a total cost of $1,000,000, and the total amount of bond issue proceeds was disbursed toward this cost. Disregard interest capitalization.
Required:
a. For each of these transactions or events, prepare journal entries without explanations, specifying the affected funds and showing how these transactions or events should be recorded by a local government whose debt is serviced by general tax revenue.
b. For each of these transactions or events, prepare journal entries without explanations, specifying the affected funds and showing how a VHWO should record these transactions or events.