Question

Create a journal entry with likely account names from a typical nonprofit organization's chart of accounts...

Create a journal entry with likely account names from a typical nonprofit organization's chart of accounts and the dollar amounts to be debited and credited. If no journal entry is required, please indicate so.

1. A wealthy citizen gave $175,000 to a local not-for-profit organization (NFP) with the restriction that only it could be spent at the discretion of the officers of the NFP but not until next year.   

2. A nurse anestheticist from a religious order that has taken a vow of poverty works full-time for a not-for-profit hospital without receiving a paycheck. A typcial nurse's salary for this type of work is $110,000 per year.

Homework Answers

Answer #1

Journal Entries in the books of Non Profit Organisation:

1) As the organoisation is receiving amount from a wealthy citizen, it is treated as donation to the Organisation. The restriction kept by the donor is a paper rule, it can't be passed as a journal entry.

Cash a/c Dr $175,000

To Donation a/c $175,000

(Being donation received for the Organisation)

2) Actually the payment for the same type work is $110,000 per year, but this nurse has taken a vow and not accepting any payment from the Organisation. So there is no payment for her and there is no need to pass journal entry.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT