L. Dawnes has just been elected treasurer of the local professional association of registered nurses. The association provides public health messages for the community as well as services for members. She is now preparing financial statements for the year and comes to you for advice on accounting for the proceeds from a major fund drive that occurred during the year. The nursing association received \(\$ 25,000\) in unrestricted donations and \(\$ 15,000\) in restricted donations that are restricted to public health advertisements. A total of \(\$ 6,000\) has been incurred for public health advertising since the restricted donations were received.

The former treasurer accounted for the \(\$ 40,000\) of donations as revenue in the unrestricted fund. L. Dawnes feels this may not be correct because it does not disclose the restricted nature of the donations for the public health messages.
\section*{Required}

a. Discuss the accounting and financial statement disclosure to be used to account for the \(\$ 25,000\) of unrestricted donations to the professional association.

b. How should the \(\$ 15,000\) of restricted contributions have been accounted for at the time of the donation? How should they have been reported on this year's financial statements?