On December 1, 2019, Sebastian University received cash of $60,000 and a pledge for another $30,000 to be paid in 2020. The amounts are to establish a permanent endowment to provide scholarships for music majors. How should this event be recorded on December 31, 2019, assuming Sebastian is a public university?

a.

Restricted Cash	60,000
Nonoperating—Additions to a permanent endowment		60,000

b.

Restricted Cash	60,000
Contributions receivable	30,000
Nonoperating—Additions to a permanent endowment		60,000
Deferred Revenues		30,000

c.

Restricted Cash	60,000
Contributions receivable	30,000
Nonoperating—Additions to permanent endowment		90,000

d.

Restricted Cash	60,000
Contributions receivable	30,000
Operating—Additions to permanent endowment		90,000

Answer rating: 100% (QA)

Solution The correct answer is a Restricted Cash 60000 Nonoperatin... View the full answer