Asked by Breanna Beaver on Apr 28, 2024
Verified
Manna House, a local not-for-profit, provides food assistance to those in need. Manna House recently received two donations:a) Cash donation of $25,000 that must be used to purchase a vehicle to be used to deliver food. If the money is not used to purchase a vehicle for that purpose, the money must be returned to the donor.b) Donated furniture that may be used for the Manna House office, sold, or put to any other use Manna House sees fit. The fair value of the furniture is $10,000.Required:Prepare the journal entries for the receipt of these donations.
Cash Donation
A monetary contribution made to support a cause, organization, or individual, typically without expecting anything in return.
Fair Value
A financial metric that represents the price at which an asset would be bought or sold in an orderly transaction between market participants at the measurement date.
- Comprehend and implement the accounting standards for nonprofit organizations in acknowledging and documenting contributions.
- Gain proficiency in composing correct journal entries for diverse transactions within not-for-profit organizations.
- Understand and apply the accounting for restricted donations and their specific uses within not-for-profit entities.
Verified Answer
HN
Learning Objectives
- Comprehend and implement the accounting standards for nonprofit organizations in acknowledging and documenting contributions.
- Gain proficiency in composing correct journal entries for diverse transactions within not-for-profit organizations.
- Understand and apply the accounting for restricted donations and their specific uses within not-for-profit entities.
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