Question

During 2015 volunteer pinstripers donated their services to General Hospital at no cost. The staff at GeneralHospital was in control of the pinstripers’ duties. If regular employees had provided the services rendered by thevolunteers, their salaries would have totaled $6,000.While working for the hospital, the pinstripers received complimentary meals from the cafeteria, whichnormally would have cost $500.      Required: Prepare the journal entry necessary in the General Fund to record the donated services on the books of GeneralHospital.

Answer 1

Date	Particulars	Debit ($)	Credit ($)
	Management and General expense (or salaries)	5500
	Donated services revenue		5500
	(To record value of donated services)

In the given case, the expertise of volunteers are used as donation. The cost by the company is in form of complimentary meals. So, the amount of donation would 6000 -500 = $ 5500.

The account management and general expense is debited as it represents the salary which would have been paid when the actual workers worked instead of volunteers