loader  Loading... Please wait...

Question(s) / Instruction(s):

     44.     (Journal entries involving net asset reclassifications)

Prepare journal entries to record the following transactions of Garza County Outreach (GCO), a not-for-profit entity providing basic services to the poor. Also, show the fund in which the entry is recorded. GCO uses an unrestricted current fund (UCF) and a restricted current fund (RCF). In accordance with its accounting policy, donations with either time or program restrictions are recorded in the RCF. All expenses, however, are recorded in the UCF. GCO observes a December 31 fiscal year end.
          a.     During December, 2008, GCO conducts a fund-raising campaign. Its campaign literature states that all funds will be used in 2009. GCO receives pledges totaling $200,000 in December. Past experience indicates it will collect only 80% of the pledges.
          b.     On December 15, GCO receives a $10,000 donation from Gary Harmer, who says that his donation must be used only to provide meals for the elderly poor.
          c.     On January 2, 2009, GCO makes journal entries to record the satisfaction of the time restriction resulting from the fund-raising campaign in transaction a.
          d.     During January, 2009, GCO provides meals for the poor at a cost of $8,000, partially fulfilling the program restriction contained in the Gary Harmer donation.

Find Similar Answers by Subject


Student Reviews

Rate and review your solution! (Please rate on a Scale of 1 - 5. Top Rating is 5.)


Expert's Answer
Download Solution:
$2.00

This solution includes:

  • Plain text
  • Cited sources when necessary
  • Attached file(s)
  • Solution Document(s)

You Recently Viewed...



Reach Us

408-538-8534

20-3582-4059

39-008-4233

+1-408-904-6494