Question

ACCOUNTING FOR NOT-FOR-PROFITS

1-Abby Hatcher runs Fuzzly Catcher a registered tier 4 charity (i.e. the operating payments are less than $125,000) that cares for abandoned pets. She is the sole volunteer, and currently the only material donor. Explain whether you think the benefits of providing a statement of service performance outweighs the costs.

Type in your answer here

2-Abby Hatcher’s occupation is an artist, and her pieces of work usually sell for $500. To raise funds for Fuzzly Catcher she has donated 10 pieces of work which were successfully auctioned off with an average sales price of $560 cash during the current year. Record the appropriate journal entries for the donation and the sale of the art.

Account	Debit	Credit
Account	Debit	Credit

Type in any workings or justifications to the journal entries here

Answer 1

Date	Particulars		Debit ($)	Credit ($)
A	Piece of Work	Dr	$5,000
	To Donations Received			$5,000
	Being Donations Received
A	Bank A/C	Dr	$5,600
	To Piece of Work			$5,000
	To Trading Account			$600
	Being Piece of work sold

S.No	Particulars	Amount
A	Number of pieces received	10
B	Normal Sale price of work	$500
C	Total Donations (A*B)	$5,000
D	Donations were sold at	$560
E	Sale Value (D*A)	$5,600