Create a journal entry with likely account names from a typical nonprofit organi

Question

Create a journal entry with likely account names from a typical nonprofit organization's chart of accounts and the dollar amounts to be debited and credited. If no journal entry is required, please indicate so.

1. A donor gave 100 shares of stock in his closely held corporation to a local not-for-profit organization (NFP) with a cost to him of $100,000 and a fair market value on the date of the gift of $150,000. His only stipulation was that the NFP only use the gift for the Kids Program, not the Adults Program.  

1. A donor gave 100 shares of stock in his closely held corporation to a local not-for-profit organization (NFP) with a cost to him of $100,000 and a fair market value on the date of the gift of $150,000. His only stipulation was that the NFP only use the gift for the Kids Program, not the Adults Program.  

2. A local bakery sends any unsold baked goods at the end of the day to the local soup kitchen, a not-for-profit organization that provides three meals a day to any one who walks in. The NFP serves these baked goods the day after the goods are received. The value of these goods over the course of the year was $50,000.

Explanation / Answer

1.Asset(shares) A/c ........................... Dr $150000

To Contribution A/c............. $150000

(Being contribution to be used in Kids program)

2.Goods A/c .......................................Dr $50000

To Contribution A/c......................... $50000

and the entry will be reversed as and when the goods are sevrved to customers.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.