For each of the independent transactions listed below, indicate which accounts are needed to record the entry and which account will be debited, credited, or left blank. At most each transaction with have 1 debit and 1 credit. Some transactions do not require a journal entry.

Accounts that can be chosen: management and general expense; contributions without donor restriction; no entry required; asset; contribution with donor restriction; net assets released from donor restrictions out; net assets released from donor restriction in; program expense; liability; revenue; fundraising expense.

Assume the organizations are not-for-profit organizations.

Hints: Asset used 8 times; no entry required used 3 times; management and general expense used 2 times; fundraising expense used 1 time; contribution without donor restriction used 4 times; contribution with donor restriction used 2 times; net assets released from donor restriction out used 1 time; net assets released from donor restriction in used 1 time; program expense used 1 time; liability used 1 time; revenue used 1 time; fundraising expense used 1 time

1. A local CPA firm donated their services to perform the regular annual financial statement audit and preparation of IRS Form 990 for a not-for-profit museum. Record the debit and the credit from the account choices above.
2. Several local rotary club members used their personal vehicles to deliver meals to senior citizens for Meals on Wheels
3. A donor contributed $2 million to a not-for-profit hospital
4. A donor contributed $4 to a not-for-profit university to be permanently invested.
5. $100,000 in earnings from a permanent scholarship endowment are released to fund scholarships.
6. A donor offers to donate $500,000 to a local mental health clinic if the clinic can raise a matching amount in the next 60 days.
7. A psychiatrist volunteers ten hours each week at a not-for-profit counseling center to asset person with drug and alcohol addition.
8. A museum receives a Picasso painting to add to its modern art collection. The modern art collection is held for public exhibition, is protected and cared for, and is subject to a policy that requires the proceeds of items that are sold to be used to acquire other items for the collection.
9. A local chapter of the United Way receives $50,000 in cash from a donor who stipulates that the donation must go to a local drug rehabilitation half-way house.
10. A religious organization receives a donation of land valued at $750,000. The donor does not indicated how the donated land should be used.
11. A museum receives a $250,000 in 2017 from a donor who stipulates that the donated funds are to be used in 2018 and 2019.
12. A not-for-profit zoo gift shop sells poster of a popular sloth in its zoo.
13. A local art museum paid for TV and radio announcements to request contributions
14. A local art museum paid for brochures with general information about the museum’s programs. The brochures were not printed as part of the fund drive.

Answer rating: 100% (QA)

1 Management and general expense No entry required 2 No en... View the full answer