A private not-for-profit entity receives two gifts. One is $80,000 and is restricted for paying salaries of
Question:
A private not-for-profit entity receives two gifts. One is $80,000 and is restricted for paying salaries of teachers who help children learn to read. The other is $110,000, which is restricted for purchasing playground equipment. Both amounts are properly spent by the end of this year. Because the purchase of the playground equipment was made at the end of the year, the organization records no depreciation this period. It has elected to view the equipment as having a time restriction. On the statement of activities, what is reported for unrestricted net assets?
a. An increase of $80,000 and a decrease of $80,000.
b. An increase of $190,000 and a decrease of $190,000.
c. An increase of $190,000 and a decrease of $80,000.
d. An increase of $80,000 and no decrease.
Step by Step Answer:
Advanced Accounting
ISBN: 978-1259444951
13th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni