Dawnes has just been elected treasurer of the local professional association of registered nurses. The association provides public health messages for the community as well as services for members. Dawnes is now preparing financial statements for the year and comes to you for advice on accounting for the proceeds from a major fund drive that occurred during the year. The nursing association received $25,000 in unrestricted donations and $15,000 in donations that are restricted to public health advertisements. A total of $6,000 has been incurred for public health advertising since the restricted donations were received.
The former treasurer accounted for the $40,000 of donations as revenue in the unrestricted fund, but Dawnes believes that this may not be correct because the association does not disclose the restricted nature of the donations for the advertisements.

Required
a. Discuss the accounting and financial statement disclosure to account for the $25,000 of unrestricted donations to the professional association.
b. How should the $15,000 of restricted contributions have been accounted for at the time of the donation? How should it have been reported on this year’s financial statements?