E22-2

2. A nongovernmental not for profit entity gives donors a sweatshirt imprinted with its log when they pay $25 dues. The value of the sweatshirt is approximately $25. This transaction is most likely reported as:

a. An exchange transaction

b. An agency transaction

c. A contribution

d. A gift in kind

3. How will a nongovernmental not-for profit entity rrecord an agency transaction in which it receives resources?

a. No entry is made in the accounts

b.Debit the asset account and credit contribution revenue

c. Debit the asset account and credit temporarily restricted net assets

d. Debit the asset account and credit a liability account