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

question 27

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 a restricted contribution that was made on January 1, 2020 in the amount of $11,000, prepare the required journal entries for 2020, indicating the fund or funds to be used.

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Definitions:

Coping Abilities

The strategies and mechanisms individuals use to manage stress and navigate difficult situations.

Babysitting

The temporary care of children by someone other than their parents or guardians, typically provided for a short period.

Stressors

Events, situations, or stimuli that cause stress, challenging an individual's ability to cope and potentially affecting health and well-being.

Inflammatory Process

The biological response of body tissues to harmful stimuli, such as pathogens, damaged cells, or irritants, characterized by redness, swelling, heat, and pain.