Assignment Details You are a believer that new employees should practice their accounting skills before throwing them into the fire Therefore, you have listed a series of transactions that require journal entries and updating of T Accounts You know that preparing nonprofit journal entries are easy, so you ask the new employee to prepare, side by side, the correct journal entry for the identical transaction once for a nonprofit entity once for a for profit company include notes for each transaction Transaction 1 Assume a nonprofit has a restricted fund for capital asset purchases Compare the journal entries for the cash purchase of a $10,000 computer by the nonprofit, to how the journal entry would look for this for profit Transaction 2 Assume that a nonprofit has a need for $80,000 for a particular new marketing expenditure, and a for profit entity needs to raise an additional $80,000 to pay for some unanticipated marketing expenses How would the journal entities look at the acquisition of the funds and the subsequent spending of the funds Transaction 3 The for profit entity sells $120,000 with net 30 day terms, while the nonprofit entity has a fund raising drive for which they receive pledges of $120,000 How do the two journal entries look

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 23, 2024

Assignment Details: You are a believer that new employees should practice their accounting skills before throwing them into the fire. Therefore, you have listed a

Assignment Details:

You are a believer that new employees should practice their accounting skills before "throwing them into the fire." Therefore, you have listed a series of transactions that require journal entries and updating of T-Accounts.

You know that preparing nonprofit journal entries are easy, so you ask the new employee to

prepare, side by side, the correct journal entry for the identical transaction:
once for a nonprofit entity
once for a for-profit company
include notes for each transaction

Transaction 1: Assume a nonprofit has a restricted fund for capital asset purchases. Compare the journal entries for the cash purchase of a $10,000 computer by the nonprofit, to how the journal entry would look for this for-profit.
Transaction 2: Assume that a nonprofit has a need for $80,000 for a particular new marketing expenditure, and a for-profit entity needs to raise an additional $80,000 to pay for some unanticipated marketing expenses. How would the journal entities look at the acquisition of the funds and the subsequent spending of the funds?
Transaction 3: The for-profit entity sells $120,000 with net 30-day terms, while the nonprofit entity has a fund raising drive for which they receive pledges of $120,000. How do the two journal entries look?