The following gifts are received in 2019 by a not-for-profit entity: I. $3,000 specified by the donor to be used to pay salaries. II. $12,000 specified by the donor for new conference room furniture. III. $6,000 specified by the donor to be held for one year before being expended. The salaries are paid in 2020 and the conference room furniture is purchased in 2019. The donor did time restriction on holding the conference room furniture. With respect to the donations received in 2019, what amount should be reported in the Statement of increase to Net Assets with Donor Restrictions for the year 2019?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The following gifts are received in 2019 by a not-for-profit entity:
I. $3,000 specified by the donor to be used to pay salaries.
II. $12,000 specified by the donor for new conference room furniture.
III. $6,000 specified by the donor to be held for one year before being expended.
The salaries are paid in 2020 and the conference room furniture is purchased in 2019. The donor did not specify any
time restriction on holding the conference room furniture.
With respect to the donations received in 2019, what amount should be reported in the Statement of Activities as net
increase to Net Assets with Donor Restrictions for the year 2019?
Multiple Choice
$ 3,000
$ 9,000
$15,000
$18,000
$21,000
Transcribed Image Text:The following gifts are received in 2019 by a not-for-profit entity: I. $3,000 specified by the donor to be used to pay salaries. II. $12,000 specified by the donor for new conference room furniture. III. $6,000 specified by the donor to be held for one year before being expended. The salaries are paid in 2020 and the conference room furniture is purchased in 2019. The donor did not specify any time restriction on holding the conference room furniture. With respect to the donations received in 2019, what amount should be reported in the Statement of Activities as net increase to Net Assets with Donor Restrictions for the year 2019? Multiple Choice $ 3,000 $ 9,000 $15,000 $18,000 $21,000
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