Problem 1 - The American Red Cross, a not for profit entity, had the following transactions; 1/20/20 Received a $200,000 donation in support of its activities 2/4/20 Received a $150,000 Federal grant to provide supplies and aid to survivors of a recent earthquake 2/21/20 Spent $180,000 of the 1/20/20 donation aiding victims of a hurricane in Florida 2/25/20 Spent $110,000 of the 2/4/20 grant aiding survivors of the recent earthquake Required; Prepare the journal entries for the above transactions. Remember to note whether the accounts involved are restricted or unrestricted.
Problem 1 - The American Red Cross, a not for profit entity, had the following transactions;
1/20/20 Received a $200,000 donation in support of its activities
2/4/20 Received a $150,000 Federal grant to provide supplies and aid to survivors of
a recent earthquake
2/21/20 Spent $180,000 of the 1/20/20 donation aiding victims of a hurricane in Florida
2/25/20 Spent $110,000 of the 2/4/20 grant aiding survivors of the recent earthquake
Required; Prepare the journal entries for the above transactions. Remember to note whether the
accounts involved are restricted or unrestricted.
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