The Save the Animals Foundation received a gift of $500,000 from a donor who wanted the gift
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Question:
The Save the Animals Foundation received a gift of $500,000 from a donor who wanted the gift used to acquire habitat for endangered snails. The money may be invested but all earnings are restricted to habitat acquisition. During the year the entire gift was invested in corporate securities. At year-end, the securities had a value of $501,000. The appropriate way to recognize the change in fair value is
A) Debit Investments $1,000; Credit Unrestricted revenue $1,000.
B) Debit Investments $1,000; Credit Temporarily restricted revenue $1,000.
C) Debit Investments $1,000; Credit Permanently restricted revenue $1,000.
D) No entry should be made until the securities are sold.
Related Book For
Essentials of Accounting for Governmental and Not-for-Profit Organizations
ISBN: 978-0073527055
10th Edition
Authors: Paul A. Copley
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