The United Way receives contributions and distributes them to other NFP organizations. Some of its transactions for
Question:
The United Way receives contributions and distributes them to other NFP organizations. Some of its transactions for the current year are as follows:
1. Donors contribute $5 million, designated to specific unaffiliated NFP organizations. $3 million of this money is distributed according to donor wishes during the current year.
2. Donors contribute $2 million, to be distributed to unaffiliated NFP organizations selected by United Way. United Way distributes $1.8 million of these donations in the current year.
3. Donors contribute $1 million, to be distributed to a specific affiliated organization. United Way distributes $900,000 of these donations in the current year.
Required:
Prepare journal entries to record the above activities. If the item affects net assets, identify the category affected.
Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson