An international children’s charity collects donations, which are used to buy clothing and toysfor children in need. The charity records donations of cash and other items as Donations Revenuewhen received. Prepare journal entries for the following transactions, which occurred during arecent month, and determine the charity’s preliminary net income.a. Received $4,000 in cash and checks from a door-to-door campaign.b. Paid $2,000 cash for employee wages this month.c. Paid $1,000 cash on a short-term loan from the bank (ignore interest).d. Bought $3,000 worth of new toy supplies from a large toy manufacturer, paying $1,000 cashand signing a short-term note for $2,000.e. The manufacturer generously donated an additional $2,500 of toy supplie
An international children’s charity collects donations, which are used to buy clothing and toys
for children in need. The charity records donations of cash and other items as Donations Revenue
when received. Prepare
recent month, and determine the charity’s preliminary net income.
a. Received $4,000 in cash and checks from a door-to-door campaign.
b. Paid $2,000 cash for employee wages this month.
c. Paid $1,000 cash on a short-term loan from the bank (ignore interest).
d. Bought $3,000 worth of new toy supplies from a large toy manufacturer, paying $1,000 cash
and signing a short-term note for $2,000.
e. The manufacturer generously donated an additional $2,500 of toy supplie
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