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Question 3 Not complete Marked out of 2.00 Flag question Question text Preparation of journal entries for a not-for-profit organization The Brewster Boosters is a
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Preparation of journal entries for a not-for-profit organization
The Brewster Boosters is a not-for-profit organization that supports the Brewster White Caps baseball team in the summer Cape Cod League for college-aged baseball players. During the year, the organization recorded a number of financial activities. Prepare journal entries for each of the following activities:
a. The organization recognized the following support and revenues (the contributions are all on account and the investment returns are in cash):
Supportcontributions (without donor restrictions) | $1,680,000 |
Supportcontributions (with donor restrictions) | 195,000 |
Revenuesinvestment (without donor restrictions) | 11,520 |
Revenuesinvestment (with donor restrictions) | 46,080 |
General Journal | ||
---|---|---|
Description | Debit | Credit |
Cash | Answer | Answer |
AnswerCashContributions receivableDepreciation expenseExpenses-programInvestmentsNet assets released from restrictionswith donor restrictionsNet assets released from restrictionswithout donor restrictionsPayablesRevenuesinvestment (with donor restrictions) | Answer | Answer |
Supportcontributions (without donor restrictions) | Answer | Answer |
Supportcontributions (with donor restrictions) | Answer | Answer |
Revenuesinvestment (without donor restrictions) | Answer | Answer |
AnswerCashContributions receivableDepreciation expenseExpenses-programInvestmentsNet assets released from restrictionswith donor restrictionsNet assets released from restrictionswithout donor restrictionsPayablesRevenuesinvestment (with donor restrictions) | Answer | Answer |
b. Brewster Boosters recognized program expenses of $1,560,000 and expenses related to support activities of $222,000, both on account. Of the program expenses, $120,000 was paid from net assets with donor restrictions and used in compliance with the donors stipulations.
Description | Debit | Credit |
---|---|---|
AnswerCashContributions receivableDepreciation expenseExpenses-programInvestmentsNet assets released from restrictionswith donor restrictionsNet assets released from restrictionswithout donor restrictionsPayablesRevenuesinvestment (with donor restrictions) | Answer | Answer |
AnswerCashContributions receivableDepreciation expenseExpenses-programInvestmentsNet assets released from restrictionswith donor restrictionsNet assets released from restrictionswithout donor restrictionsPayablesRevenuesinvestment (with donor restrictions) | Answer | Answer |
To release net assets from restrictions. | ||
AnswerCashContributions receivableDepreciation expenseExpenses-programInvestmentsNet assets released from restrictionswith donor restrictionsNet assets released from restrictionswithout donor restrictionsPayablesRevenuesinvestment (with donor restrictions) | Answer | Answer |
Expenses-support | Answer | Answer |
AnswerCashContributions receivableDepreciation expenseExpenses-programInvestmentsNet assets released from restrictionswith donor restrictionsNet assets released from restrictionswithout donor restrictionsPayablesRevenuesinvestment (with donor restrictions) | Answer | Answer |
To record recognition of expenses. |
c. The organization acquired $78,000 of long-term assets during the year and recorded $54,000 of depreciation expense (record the net increase in long-term assets to the property, plant and equipment, net account). The depreciation expense will be allocated to program and support expense categories at the end of the year.
Description | Debit | Credit |
---|---|---|
Property, plant and equipment, net | Answer | Answer |
AnswerCashContributions receivableDepreciation expenseExpenses-programInvestmentsNet assets released from restrictionswith donor restrictionsNet assets released from restrictionswithout donor restrictionsPayablesRevenuesinvestment (with donor restrictions) | Answer | Answer |
AnswerCashContributions receivableDepreciation expenseExpenses-programInvestmentsNet assets released from restrictionswith donor restrictionsNet assets released from restrictionswithout donor restrictionsPayablesRevenuesinvestment (with donor restrictions) | Answer | Answer |
d. Brewster Boosters purchased $72,000 of investments during the year.
Description | Debit | Credit |
---|---|---|
AnswerCashContributions receivableDepreciation expenseExpenses-programInvestmentsNet assets released from restrictionswith donor restrictionsNet assets released from restrictionswithout donor restrictionsPayablesRevenuesinvestment (with donor restrictions) | Answer | Answer |
AnswerCashContributions receivableDepreciation expenseExpenses-programInvestmentsNet assets released from restrictionswith donor restrictionsNet assets released from restrictionswithout donor restrictionsPayablesRevenuesinvestment (with donor restrictions) | Answer | Answer |
e. The organization collected $1,800,000 of contributions receivable and used the cash to pay $1,740,000 of accounts payable.
Description | Debit | Credit |
---|---|---|
AnswerCashContributions receivableDepreciation expenseExpenses-programInvestmentsNet assets released from restrictionswith donor restrictionsNet assets released from restrictionswithout donor restrictionsPayablesRevenuesinvestment (with donor restrictions) | Answer | Answer |
AnswerCashContributions receivableDepreciation expenseExpenses-programInvestmentsNet assets released from restrictionswith donor restrictionsNet assets released from restrictionswithout donor restrictionsPayablesRevenuesinvestment (with donor restrictions) | Answer | Answer |
To record collection of cash. | ||
AnswerCashContributions receivableDepreciation expenseExpenses-programInvestmentsNet assets released from restrictionswith donor restrictionsNet assets released from restrictionswithout donor restrictionsPayablesRevenuesinvestment (with donor restrictions) | Answer | Answer |
AnswerCashContributions receivableDepreciation expenseExpenses-programInvestmentsNet assets released from restrictionswith donor restrictionsNet assets released from restrictionswithout donor restrictionsPayablesRevenuesinvestment (with donor restrictions) | Answer | Answer |
To record payment of payables. |
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