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i need journal entry for all of these class is government and non profit
At the November Board of Directors meeting, the chair of the Board, Dr. Murphy, told you she intended to make her annual end-of-year $5,000 contribution to the Clinic before the end of the fiscal year. You did not make an entry for this at the time since she indicated she would pay before the end of the year. As of early January, no check has been received.
Unrestricted contributions revenue includes $15,000 which, based on a letter dated October 1, 2016 from the donor, is to be used to offset patient care expenses next fiscal year..
The fair value of unrestricted investments at year end is $350,000.
Historically, expenses not directly relating to a specific function were allocated to all functions based on the building’s square footage usage. The analysis you did earlier in the year indicates the relationship of salaries and benefits is a more appropriate allocation basis.
Expert Answer
Current Fiscal Year entries
1. Contribution receivable A/C Dr. 5000
To Allowance for uncollectible contribution A/C 5000
(Being receipt of pledge by Dr. Murphy recorded)
2. Cash A/C Dr. 15000
To Contributions- Unrestricted A/C 15000
(Being unrestricted contributions recorded)
1/Oct/2016 Reclassification from unrestricted Dr. 15000
To Reclassification to temporarily restricted 15000
(Being reclassification recorded basis donor letter dated 1/Oct/2016)
3. Investments A/C Dr. XX
To Cash A/C XX
(Being purchase of unrestricted investments recorded.)
Note: Purchase price not mentioned in the question, hence left blank
Investments A/C XX
To Unrestricted net unrealized and realized investment gains/losses XX
(Being appreciation in fair market value of investments recorded)
OR
Unrestricted net unrealized and realized investment gains/losses XX
To Investments XX
(Being depreciation in fair market value of investments recorded)
Note: Appreciation or depreciation will depend on whether the investment was purchased at lower or higher than $250000
Next Fiscal Year entries
1. Patient care expenses A/C Dr. 15000
To Cash A/C 15000
(Being cash disbursement recorded)
2. Reclassification from temporarily restricted Dr. 15000
To Reclassification to unrestricted 15000
(Being satisfaction of restrictions recorded for patient care expenses)
