Problem 1 - Journal Entries for Nongovernmental, Not-for-Profit Entities Transac

Question

Problem 1 - Journal Entries for Nongovernmental, Not-for-Profit Entities

Transactions: The following selected transactions occurred for a nongovernmental, not-for-profit organization.Requirement: Prepare the journal entries for the transactions below.

1.Unrestricted cash contributions received during the year, $300,000.

2.Restricted cash contributions were received during the year for the following: (a) Building fund, $202,000; and (b) Permanent Endowment, $1,000,000.

3.A benefit concert was held to raise resources for the building fund.Receipts totaled $10,400 and direct costs incurred totaled $1,850.

4.Restricted cash contributions were received during the year for the Education programs, $43,000.

5.Salary expenses incurred for the education programs were paid, $14,000.

6.Payments to the building contractor during the year were $110,000.

7.Cost of materials used for education programs during the year, $32,000.

        8. Earnings received on building fund investments were not restricted by donors but the board requires that they be used to finance the building.The earnings on those investments received for the year were $2,500.

Explanation / Answer

All Amounts in $ Journal Entries 1. Cash A/c 300000 To General Fund A/c 300000 2. Cash A/c 1202000 To Building Fund A/c 202000 To Permanent Endowment Fund A/c 1000000 3. Cash A/c 10400 To Building Fund Income A/c 10400 Building Fund Expenses A/c 1850 To Cash A/c 1850 4. Cash A/c 43000 To Education Fund A/c 43000 5. Education Fund Salary A/c 14000 To Cash A/c 14000 6. Building Fund Expenses A/c 110000 To Cash A/c 110000 7. Education Fund Expenses A/c 32000 To Cash A/c 32000 8. Cash A/c 2500 To Building Fund Income A/c 2500 Building Fund Income A/c 2500 To Building Fund A/c 2500

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.