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Aliberry Research Foundation is a large non-profit organization that funds research into a variety of financial instruments. Annual revenues are in excess of $15 million. It has an endowment fund, a general fund and a capital fund. You have just been appointed treasurer of its Board and the accountant has come to you with a variety of questions. Aliberry received a large endowment of $3 million on January 31, 2013. During the year ended 2013, there was interest earned of $120,000.
Required:
Prepare the journal entries required to record the receipt of the endowment and the interest earned assuming the entity uses the restricted fund method.
Difference-In-Differences
A statistical technique used in econometrics and quantitative research to determine the effect of a specific intervention or treatment by comparing the before-and-after differences in outcomes between a control group and a treatment group.
Causal Effects
The relationship or impact that one variable has in directly changing the value or outcome of another variable.
Policy
A course or principle of action adopted or proposed by an organization or individual.
Causation
The relationship between cause and effect where one event directly results in another.
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