Question

Prepare the journal for the following transactions

March 1 Donation of $900 cash, with no restriction.
2 James Dean donates $10,000 with the requirement that it be used to purchase x-ray
equipment for the patients.
3 Paid with check #100 the March office rent of $500.
4 The electricity bill has not arrived. It is estimated that the amount of usage is $425.
Record the accrual entry.
5 Received $400,000 as a gift donation.
6 A grant of $1,000 was received with the condition that it be used to attend homeless
People.
7 Property was purchased for $100,000. A down payment of $50,000 was made from
Unrestricted cash and the remainder with a 12% mortgage.
8 Received $200,000 from fund raising campaigns.
9 Paid the total of $6,000 for vouchers payable due.
10 Depreciation for the equipment purchased was $2,000.

Answer 1

Debit Journal Entries 1. March I Donation of $ 900 cash, with no restruction Date Account credit March I Donation A/c Dr. $900 (P&L Item To cash Al cr. (Being donation made to charitable Trust) $ 900 credit Account Date $10,000 2. Donates $ 100.000 with the requirement that it be used to Purchase X-ray equipment to Patients Debit March 1 Donation Alc or $10,000 (P&L Item) To cash 11Bank Alccy. (Being donation made to Trust to Purchase x-ray equipment)

check #100 the March office rent of 3. Paid with $500 Date March I Debit credit $ 800 that the Account Rent Alc Dr. (P&L Item) $ 500 TO Bank Al cr. (Being Renk paid through check #100 for March Month ) 4. The Electricity bill has not arrived. It is estimated amount of usage is $425. Date Account Debit March I Electricity Aſcorby CALL them) $425 TO Elechicily payablé Ale cr. (Liability Tlem) (Being Accrual Enly passed for Electricity for March Month ) credit $ 425

5. Received Date $400,000 as a gift donation March I credit Account Cash Debit AlC Dr. $400000 To Danation Received Ale cr. (P&L Item) (Being Gift Donation Received) $400,000 6. A Grant of $1000 was received with the Condition that it be used to attend homeless people. It should necognize of Income subject to Conditions. Assume Conditions are fulfilled. Journal Entry may present in two ways.

7. Property was purchased for $ 100,000. A down payment of $50,000 was made from unrestricted cash and the Yemainder with 19). Mortgage. Dale Account Debit Credit March I Properly Alc Dr. $100,000 (Asset Ilem) To Cash Alc cr. TO Loan (19:1. Mortgage) Alccr. (Liability Item) (Being Property Purchased with Loan and Down Payment) $50,000 $50,000

Credit Date March 1 Debit $1000 $1000 cr. Account Cash Al Dr. To Expense to attend homeless people Alc (P&L Item) (Being Reduce from Expenses) credit Date March 1 $1000 Account Debit Cash Alo Dr. $1000 TO Donation Received Alccr. CP&L Ilem ) (Show as Income)

9. Paid the total of $6000 for vouchers payable que. Date Account Debit Credit March Y Vouchers Payable due Alc Dr $6000 (Liability) $6000 To cash Alc er Being paid $6000 for vouchers Payable due) 10. Depreciation for equipment Purchased was $2000 credit Date Account March I (P&L Item) Debit $6000 Dr. Depreciation Ale $ 6000 To Equipment Ale cr. (Being Depreciation provided)

8. Received credit Date March 1 $2,00,000 $2,00,000 from hind raising Compaigns Account Debit Cash Al Dr. $9,00,000 To other Income Ale er. (P&L Item) Being Received $ 2,00,000 from Pund raising compaigns)