The Following Are Selected Transactions for HELP-ON-US (HOU), an NFPO

question 11

Essay

The following are selected transactions for HELP-ON-US (HOU), an NFPO for 2020. HOU uses the restricted fund method of accounting for contributions. HOU has an operating fund, a capital fund and an endowment fund.
On January 1, the organization purchased fixed assets at a cost of $10,000. The assets were estimated to have a useful life of 5 years with no residual value. Straight-line amortization is used.
Assuming that the assets were purchased from unrestricted contribution that was made on January 1, 2020, prepare the required journal entries for 2020, indicating the fund or funds to be used.
$\begin{array}{|l|r|r|}\hline \text { OperatingFund: } & & \\\hline \text { Cash } & \$ 10,000 & \\\hline \text { Contribution Revenue } & & \$ 10,000 \\\hline \text { Transfer to Capital Fund } & \$ 10,000 & \\\hline \text { Cash } & & \$ 10,000 \\\hline \text { Capital Fund: } & & \\\hline \text { Cash } & \$ 10,000 & \\\hline \text { Transfer from Operating Fund } & & \$ 10,000 \\\hline \text { Equipment } & \$ 10,000 & \\\hline \text { Cash } & & \$ 10,000 \\\hline \text { Amortization Expense } & \$ 2,000 & \\\hline \text { Accumulated Amortization } & & \$ 2,000 \\\hline\end{array}$

Understand the principles of sustainability in manufacturing and the certification processes that validate these practices.

Comprehend various production processes and systems, including specialization, mass, and flexible production.

Recognize the role and methodologies of production and operations management in manufacturing.

Differentiate between analytic, synthetic, and other types of production systems based on their operation characteristics.

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