EI, an NFP with a calendar year end, had the following transactions involving contributions for Year...

 

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EI, an NFP with a calendar year end, had the following transactions involving contributions for Year 9: 1. EI received cash contributions of $500,000 to be used at the board of directors' discretion. 2. A supporter, who has made similar contributions in prior periods, promised a $500,000 contribution in Year 10. The promise is legally enforceable. 3. Medical services with a fair value of $100,000 were donated. EI would have purchased these services. 4. El received $350,000 of pledges restricted for capital additions. All pledges are legally enforceable and are expected to be received in Year 10. El's experience indicates that 10% of the pledges will be uncollectible. 5. El received a $700,000 donor-restricted endowment during the year from a donor who required the income and investment appreciation to be used to maintain EI's barns and stables in perpetuity. Based on the information provided, indicate which accounts would be utilized in the journal entries to record these transactions. Additionally, enter the net asset category that each transaction would be reported in on El's Statement of Activities. Transaction Debit Credit(s) Net Asset Category 1. 2. 3. 4. EI, an NFP with a calendar year end, had the following transactions involving contributions for Year 9: 1. EI received cash contributions of $500,000 to be used at the board of directors' discretion. 2. A supporter, who has made similar contributions in prior periods, promised a $500,000 contribution in Year 10. The promise is legally enforceable. 3. Medical services with a fair value of $100,000 were donated. EI would have purchased these services. 4. El received $350,000 of pledges restricted for capital additions. All pledges are legally enforceable and are expected to be received in Year 10. El's experience indicates that 10% of the pledges will be uncollectible. 5. El received a $700,000 donor-restricted endowment during the year from a donor who required the income and investment appreciation to be used to maintain EI's barns and stables in perpetuity. Based on the information provided, indicate which accounts would be utilized in the journal entries to record these transactions. Additionally, enter the net asset category that each transaction would be reported in on El's Statement of Activities. Transaction Debit Credit(s) Net Asset Category 1. 2. 3. 4.

Answer rating: 100% (QA)

To record the transactions described the following journal entries and net asset categorie... View the full answer