Author Question: A donor had previously donated 2,000 to a not-for-profit entity, stipulating that the gift must be ... (Read 80 times)

Destiiny22

  • Hero Member
  • *****
  • Posts: 557
A donor had previously donated 2,000 to a not-for-profit entity, stipulating that the gift must be used to finance the annual Fall Harvest festival. The festival is held and the gift is used for the stipulated purpose.
 
  Which of the following best describes the effect of the journal entries needed to record the expense resulting from use of the gift?
   a. An expense is reported in the temporarily restricted column of the statement of activities.
   b. An expense is reported in the temporarily restricted column of the statement of activities, temporarily restricted net assets are increased, and unrestricted net assets are decreased.
   c. An expense is reported in the unrestricted column of the statement of activities.
   d. An expense is reported in the unrestricted column of the statement of activities, unrestricted net assets are increased, and temporarily restricted net assets are decreased.

Question 2

The adjusting entry for the depreciation of office equipment for the period includes
 a. debiting Depreciation ExpenseOffice Equipment and crediting Office Equipment.
   b. debiting Office Equipment and crediting Accumulated DepreciationOffice Equipment.
   c. debiting Depreciation ExpenseOffice Equipment and crediting Accumulated DepreciationOffice Equipment.
   d. debiting Office Equipment and crediting Depreciation ExpenseOffice Equipment.



underwood14

  • Sr. Member
  • ****
  • Posts: 346
Answer to Question 1

d

Answer to Question 2

c



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

In 1885, the Lloyd Manufacturing Company of Albany, New York, promoted and sold "Cocaine Toothache Drops" at 15 cents per bottle! In 1914, the Harrison Narcotic Act brought the sale and distribution of this drug under federal control.

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Did you know?

Everyone has one nostril that is larger than the other.

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

For a complete list of videos, visit our video library