Prepare journal entries to record the transactions. 1. Donor A gave a nonprofit a $55,000 cash gift in June, stipulating that the nonprofit could not use the gift until the next fiscal year. 2. Donor B gave a nonprofit a $27,500 cash gift in July, telling the nonprofit the gift could be used only for research on a specific project. 3. In response to a special fundraising campaign, whereby contributions could be used only for construction of a new warehouse, a large number of individuals promised to make cash contributions totaling $2,200,000 during the current fiscal year. The nonprofit believes it will actually collect 80 percent of the promised cash. 4. Donor C gave a nonprofit several investments having a fair value of $3,300,000 in March. Donor C stipulated that the nonprofit must hold the gift in perpetuity, but it could use the income from the gift for any purpose the trustees considered appropriate. Between March and December, the investments produced income of $110,000 5. Using the resources raised in Transaction 3, a nonprofit paid an architect $55,000 before fiscal year end to make preliminary designs for a new building.
Prepare
1. Donor A gave a nonprofit a $55,000 cash gift in June, stipulating that the nonprofit could not use the gift until the next fiscal year.
2. Donor B gave a nonprofit a $27,500 cash gift in July, telling the nonprofit the gift could be used only for research on a specific project.
3. In response to a special fundraising campaign, whereby contributions could be used only for construction of a new warehouse, a large number of individuals
promised to make cash contributions totaling $2,200,000 during the current fiscal year. The nonprofit believes it will actually collect 80 percent of the promised cash.
4. Donor C gave a nonprofit several investments having a fair value of $3,300,000 in March. Donor C stipulated that the nonprofit must hold the gift in perpetuity,
but it could use the income from the gift for any purpose the trustees considered appropriate. Between March and December, the investments produced income of $110,000
5. Using the resources raised in Transaction 3, a nonprofit paid an architect $55,000 before fiscal year end to make preliminary designs for a new building.
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