### Journal Entries for Donations and Investment Transactions for Juarez Foundation for the Treatment of TMJA donor provided investments to the Juarez Foundation for the Treatment of TMJ, a nonprofit organization, on January 15, 2021. The fair value of the investments was $200,000 at the time of the donation. The donor specified that the gift should be used exclusively for research on TMJ (temporomandibular joint) surgical treatments.1. **Initial Donation** (January 15, 2021): - The foundation received investments valued at $200,000. Journal Entry: ``` DR Investments $200,000 CR Donations – Temporarily Restricted $200,000 ```2. **Unrealized Gain/Loss** (March 31, 2021): - By March 31, 2021, the value of the investments increased to $226,000. Journal Entry: ``` DR Investments $26,000 CR Unrealized Gain on Investments $26,000 ```3. **Sale of Investments** (May 3, 2021): - On May 3, 2021, the Foundation sold the investments for $215,000. Journal Entry: ``` DR Cash $215,000 CR Investments $226,000 DR Realized Loss on Investments $11,000 ```4. **Research Expenses** (June 30, 2021): - By June 30, 2021, the Foundation expended $175,000 on research related to TMJ surgical treatments. Journal Entry: ``` DR Research Expenses $175,000 CR Cash $175,000 ```5. **Satisfaction of Donor Restrictions** (June 30, 2021): - The conditions of the donor's restriction were fulfilled upon spending $175,000 on applicable research. Journal Entry: ``` DR Donations – Temporarily Restricted $175,000 CR Donations – Released from Restrictions $175,000 ```---**Summary:**- **Donation on January 15, 2021:** The Foundation received a gift of investments valued at $200,000.- **Unrealized gain/loss on March 31, 2021:** The value of the investments appreciated to $226,

Journal Entries: It is the procedure to record the business transaction into the journal by…

monprofit organization, on January 15, 2021. The fair value of the investmer $200,000 at the date of the gift. The donor restricts the use of the gift for re on TMJ surgical treatments. By March 31, 2021, the investment value has gr $226,000. On May 3, 2021 the Foundation sells the investments for $215,0 June 30, 2021, the Foundation had spent $175,000 on research related to T surgical treatments.

monprofit organization, on January 15, 2021. The fair value of the investmer $200,000 at the date of the gift. The donor restricts the use of the gift for re on TMJ surgical treatments. By March 31, 2021, the investment value has gr $226,000. On May 3, 2021 the Foundation sells the investments for $215,0 June 30, 2021, the Foundation had spent $175,000 on research related to T surgical treatments.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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