QUESTION 44

Prepare the journal entry to record the following transaction of Youth Services Inc. (YSI), a private not-for-profit entity that provides counseling, training, and recreation programs for young people.YSI records all transactions so as to identify the two classes of net assets (without donor restrictions & with donor restrictions) required for financial reporting.YSI initially records all donations with program restrictions as donor-restricted until used for the intended purpose.

Mary Milligan donates $5,000, stipulating that YSI must use her gift to obtain the services of a well-known country singer for a special concert.