Recording journal entries for nonprofits6. Donor D advises a university that he has established an irrevocable charitable remainder trust, administered by his attorney, whereby his wife will receive income from the trust as long as she lives. At her death, the remaining trust assets will be distributed to the university as a permanent endowment. The university’s actuary estimates the fair value of the university’s beneficial interest to be $400,000(answer question 6 - what should be the correct entry?) To record the time restricted giftNet assets with donor restrictions - Reclassifications out - Satisfaction of time restrictions50,000Net assets without donor restrictions - Reclassifications in - Satisfaction of time restrictions50,000 vTo reclass donor restriction as the time restriction has been satisfied.2 Administrative expenses2,400Donated services - Support without donor restrictions2,400To recognize the time donated as an usher3 No entry required - debitNo entry required - creditno entry is warranted as condition is met4 Cash23,000Contribution revenue - Support without donor restrictions23,000 vTo recognize the cash contribution without a donor restrictionContributions receivable20,000Contribution revenue - Support without donor restrictions20,000 vTo recognize the cash contribution without a donor restriction5 Art works held for sale5,000Contribution revenue - Art without donor restrictions5,000 vTo recognize an art donation without restriction6 Contributions receivable - Charitable remainder trust400.000Contribution revenue - Support with time restrictions400,000 xTo recognize charitable remainder trust gift7 Investments30,000Unrealized and realized gains and losses on investments with donor restrictions30,000>>> >> >>>

Journal Entry: It is the entry which is used to record the financial transactions(either economic…

Answered: Donor D advises a university that he…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Recording journal entries for nonprofits

6. Donor D advises a university that he has established an irrevocable charitable remainder trust, administered by his attorney, whereby his wife will receive income from the trust as long as she lives. At her death, the remaining trust assets will be distributed to the university as a permanent endowment. The university’s actuary estimates the fair value of the university’s beneficial interest to be $400,000

(answer question 6 - what should be the correct entry?)

To record the time restricted gift
Net assets with donor restrictions - Reclassifications out - Satisfaction of time restrictions
50,000
Net assets without donor restrictions - Reclassifications in - Satisfaction of time restrictions
50,000 v
To reclass donor restriction as the time restriction has been satisfied.
2 Administrative expenses
2,400
Donated services - Support without donor restrictions
2,400
To recognize the time donated as an usher
3 No entry required - debit
No entry required - credit
no entry is warranted as condition is met
4 Cash
23,000
Contribution revenue - Support without donor restrictions
23,000 v
To recognize the cash contribution without a donor restriction
Contributions receivable
20,000
Contribution revenue - Support without donor restrictions
20,000 v
To recognize the cash contribution without a donor restriction
5 Art works held for sale
5,000
Contribution revenue - Art without donor restrictions
5,000 v
To recognize an art donation without restriction
6 Contributions receivable - Charitable remainder trust
400.000
Contribution revenue - Support with time restrictions
400,000 x
To recognize charitable remainder trust gift
7 Investments
30,000
Unrealized and realized gains and losses on investments with donor restrictions
30,000
>>
> >
> >
>>

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions