Transactions: the Following Selected Transactions Occurred for a Nongovernment, Not-For-Profit

question 8

Essay

Transactions: The following selected transactions occurred for a nongovernment, not-for-profit organization. All amounts are in thousands of dollars.
1. Received a contribution of stock to establish an endowment fund. The income from the endowment is unrestricted. The donor had acquired the stock for $23 about 20 years earlier. Its estimated fair value when donated was $250.
2. Pledges receivable at year end were $100, all from pledges received during the year. The pledges are unrestricted and 5% percent of the pledges are estimated to be uncollectible. The pledges expect to be collected early next year.
For questions 3-5, assume that the organization has adopted a policy that restrictions on donations made for capital purposes are met when the capital item is purchased.
3. A cash gift of $200 was received restricted for the purchase of equipment.
4. Equipment of $80 was purchased from the gift restricted for this purpose.
5. Depreciation expense for the year on the equipment purchased is $10.
For questions 6-8, assume that the organization has adopted a policy that restrictions on donations made for capital purposes are not met when the capital item is purchased.
6. A cash gift of $200 was received restricted for the purchase of equipment.
7. Equipment of $80 was purchased from the gift restricted for this purpose.
8. Depreciation expense for the year on the equipment purchased is $10.
Requirement: Prepare the journal entries for the above transactions.

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Definitions:

Cognitive Dissonance

A psychological discomfort experienced when holding two or more conflicting beliefs, ideas, or values at the same time.

Rational Commitment

A decision-making approach where choices are made based on logical evaluation and reason rather than emotion or social pressure.

Financial

Pertaining to money, investments, banking, or management of assets and liabilities.

Developmental

Pertaining to the process of growth and change over time, often focusing on emotional, physical, psychological, or intellectual expansion.