You are a believer that new employees should practice their accounting skills
Question # 00103207
Posted By:
Updated on: 09/14/2015 02:03 PM Due on: 09/09/2015
You are a believer that new employees should
practice their accounting skills before "throwing them into the fire."
Therefore, you have listed a series of transactions that require journal
entries and updating of T-Accounts.
You know that preparing nonprofit journal entries are easy, so you ask the new employee to
prepare, side by side, the correct journal entry for the identical transaction:
once for a nonprofit entity
once for a for-profit company
include notes for each transaction
Transaction 1: Assume a nonprofit has a restricted fund for capital asset purchases. Compare the journal entries for the cash purchase of a $10,000 computer by the nonprofit, to how the journal entry would look for this for-profit.
Transaction 2: Assume that a nonprofit has a need for $80,000 for a particular new marketing expenditure, and a for-profit entity needs to raise an additional $80,000 to pay for some unanticipated marketing expenses. How would the journal entities look at the acquisition of the funds and the subsequent spending of the funds?
Transaction 3: The for-profit entity sells $120,000 with net 30-day terms, while the nonprofit entity has a fund raising drive for which they receive pledges of $120,000. How do the two journal entries look?
You know that preparing nonprofit journal entries are easy, so you ask the new employee to
prepare, side by side, the correct journal entry for the identical transaction:
once for a nonprofit entity
once for a for-profit company
include notes for each transaction
Transaction 1: Assume a nonprofit has a restricted fund for capital asset purchases. Compare the journal entries for the cash purchase of a $10,000 computer by the nonprofit, to how the journal entry would look for this for-profit.
Transaction 2: Assume that a nonprofit has a need for $80,000 for a particular new marketing expenditure, and a for-profit entity needs to raise an additional $80,000 to pay for some unanticipated marketing expenses. How would the journal entities look at the acquisition of the funds and the subsequent spending of the funds?
Transaction 3: The for-profit entity sells $120,000 with net 30-day terms, while the nonprofit entity has a fund raising drive for which they receive pledges of $120,000. How do the two journal entries look?
-
Rating:
/5
Solution: A++ PERFECTLY DONE