(500 Words + Journal Entries)Your city has a voluntary health and welfare organization (VHWD) that provides musical opportunities for inner-city youth. It does not use fund accounting, but it does identify all revenues by their net asset class. The following transactions have occurred in the past year:The VHWD received gift pledges from donors in the amount of $25,000, which were to be used however they were needed. History shows that 95% of the pledges were collected. After 1 month, $24,000 of the pledges was collected. There was $1,000 written off as uncollectible. The VHWD received a gift of 1,000 shares of stock. The donor of the gift of shares stated that the money was to be used to buy musical instruments for the program. Fair value of the stock on the date of the gift was $15 per share. Sale of the stock yielded $17,000. The VHWD purchased 2 violins at the cost of $2,000 each, 2 cellos for $3,000 each, and a small harp for $5,000 for the program, using the proceeds from the stock sale. The VHWD billed the city for $5,000 of contracted costs. The VHWD spent $10,000 on the following: Music lessons$7,000Instrument maintenance2,000Administrative expense1,000Total$10,000Please make a journal entry for each of the transactions. Remember that the revenues must be classified as unrestricted, temporarily restricted, or permanently restricted. The main areas for information on financial reporting for not-for-profit organizations (NFPOs) and VHWOs can be found in Financial Accounting Standards Board (FASB) statements 116 and 117. For your VHWO, you will have to make an additional report that is not required for NFPOs. Provide examples of the types of information that would be included in this report.

Welcome. This is our first written assignment in BL 240. Before you begin the assignment, re-read the sections of the course syllabus (see Modules>Getting Started>Syllabus) dealing with “Written Assignments” to ensure that you understand the format (cover page plus no more than two type-written double spaced pages, content of the cover page, Code of Honor statement, etc.). You will be graded both on your response to the assignment and on having followed the directions (format). The key is to identify each legal issue (major and minor) and the general rule of law that applies to each issue. Verbiage will not be rewarded but the thoughtfulness and thoroughness of your response will be. The object is for you to show me that you understand the material in Unit 1 and can apply it to a specific fact set. Written Assignment #1: Kyle and his family own a successful farming and processing business at several locations near Weston in Marion County, AL (not far from Hamilton, AL). The produce that they grow (vegetables and fruits) is sold under their own label, Alabama Sunshine. Kyle raises all of the produce on the family farms and sells it and the condiments that he makes from the produce at a roadside market that his family owns just outside of Weston on Bexar Ave.Although his family helps run the business, Kyle hires temporary workers during the peak times of the planting, growing, and harvest seasons. He also hires temporary workers during peak production times in his condiment processing facility in Hamilton, AL. As can happen, Kyle occasionally is approached by one of his local, seasonal workers about hiring a cousin or other relative who is new to Alabama. This potential employee would agree to work for below minimum wages, would not ask for or expect any health insurance or other benefits, and would gladly accept all wages in cash without any deductions for social security (OASDI) or taxes. With the rising costs of fuel, fertilizer, and supplies, Kyle needs to cut expenses wherever and whenever possible and he could save money by hiring such workers. Since his operation is rural (primarily in Marion and Fayette Counties, AL), he feels that he would probably not have any problems from State or federal authorities. Kyle tries to be an ethical business person. He knows that what he is being asked to do is questionable at best and possibly illegal but it is mid-February; planting time for the early season crops is approaching quickly; and he knows that he needs the extra workers to get his fall/winter crops processed and the spring crops planted. Without a successful harvest and preparation for the next planting, there will be no Alabama Sunshine produce to sell and he will not be able to support his family or regular workers.As people have grown more health conscious, demand for Kyle’s organically grown produce has increased and grocery store customers are asking for Alabama Sunshine produce by name. Kyle would like to expand the retail operations to include a store along a nearby major highway (I-22) that connects Birmingham, AL, Tupelo, MS, and Memphis, TN but he does not want to get entangled in what he considers to be “unnecessary” federal and state regulations.Kyle finished his business degree from UNA several years ago and he vaguely recalls Unit 1 in his BL 240 textbook, so he understands the basic issues but he trusts your knowledge and comes to you for advice and counsel. What should Kyle consider as he ponders the relationship between “law” and “business ethics”? What factors, if any, have changed society’s concept of business ethics and the social responsibility of business enterprises? What should Kyle understand about the relationship between “maximum profits” and “optimum profits”? Kyle wonders if the federal government can regulate his business operations. And, if so, under what clause of the U.S. Constitution might the federal government regulate Kyle’s business activities? What is Kyle’s best argument against federal regulation of his roadside stand and farm businesses as the operations exist now? Will he be successful in this argument? Would it make a difference if he opens a store along the highway (I-22) connecting Birmingham, Tupelo, and Memphis? Under what authority would the State of Alabama have an interest in Kyle’s business? What other issues might Kyle face? Note: As with all Written Assignments, WA1 has a point value of 25 points. This is to be your own work with no help offered, given, or accepted as per our Class Code of Honor (which is to be on the coverpage of your submission, see Syllabus). To help you organize your thoughts, I suggest that you read the fact set; decide which facts are relevant and which are merely verbiage; based on the information in Unit 1, decide which information is relevant to the facts; then state the questions (issues) that you must answer to help Kyle and, for each issue, state the relevant law (general statement of the applicable law in your own words). You can apply the law to the issue to reach a conclusion if you like, but reaching a conclusion is not required. The key is to identify clearly the questions (issues) that you must answer and state the applicable law that will guide you in answering each respective question. Also note that your response to this assignment is to be submitted as an attachment via the Dropbox function, and not as an email attachment. Use Word to prepare and submit your work.