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The Boys and Girls Clubs received a contribution of $200,000 in October 2023. The donor stipulated that the funds must be perpetually invested as an
The Boys and Girls Clubs received a contribution of $200,000 in October 2023. The donor stipulated that the funds must be perpetually invested as an endowment and only the earnings (interest or dividends) from the investment could be spent. How should the Clubs record the receipt of the contribution?
Group of answer choices
a.
RESTRICTED FUND | Debit | Credit |
Cash | 200,000 | |
Revenue -- contribution | 200,000 |
b.
UNRESTRICTED FUND | Debit | Credit |
Cash | 200,000 | |
Revenue -- contribution | 200,000 |
c.
TEMPORARILY RESTRICTED FUND | Debit | Credit |
Cash | 200,000 | |
Revenue -- contribution | 200,000 |
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