Question

The Evangelical Private School follows FASB standards of accounting and reporting Cash contributions were received as follows: (a) $1,122,000 for any purpose desired by the school, (b) $312,500 for salary supplements for school faculty.( $427000 to be used during the next fiscal year in any manner desired by the school,(d) $625,000 for the construction of a new auditorium, and (e) $420,000 to be invested permanently, with the income to be used as desired by the school. The school's policy is to record all restricted gifts as temporarily restricted and then reclassify when the restriction is lifted 2 The school expended $400,000 of the $1,122,000 mentioned in for school furniture. Record the plant as unrestricted. 3 The school expended $291,250 for salary supplements as directed by the donor in 1(b) The $427000 in 1(d was retained for use next year, as directed by the donor 5 $805,000 was expended for the construction of the new auditorium. School policy is to record all plant as unrestricted 6. The $420.000 mentioned in 1(e) was invested permanently, as directed by the donor, and in the year ended June 30, 2017, the school received interest of $19,950, none of which was expended Required: Record journal entries for the above transactions during the year ended June 30, 2017 (If no entry is required for a transaction/event select "No Journal Entry Required" in the first account field.) View transaction list ournal entry worksheet 12345678....1 Record the entry for cash contributions for unrestricted fund. Enter debits before credits Debit Ca la

Answer 1

Evangelical Private School Journal Enteries Event Particulars Debit in $ Credit in $ a. Cash a/c 1122000 To Contributions Unrestricted 1122000 (Donation for any purpose desired by the school) b.Cash a/c 312500 To Contributions temporarily restricted 312500 (Donation for salary supplements for school faculty) c. Cash a/c 427000 To Contributions temporarily restricted 427000 (Donation to be used during the next fiscal year in any manner) d. Cash a/c Dr. 625000 To Contributions temporarily restricted 625000 (Donation for for the construction of a new auditorium e Cash a/c (to be invested permanentl Dr. 420000 To Contributions permanently restricted 420000 2 Furniture and equipment a/c Dr. To Cash (The school expended $400,000 of the S1,122,000 ary supply expense a/c Dr. 291250 To Cash 291250 (The school expended the $291,250 for salary supplements Temporary restriction a/c Dr. 291250 To Satisfaction of program restrictions 291250 4 No Ent 5 Building a/c To Cash Dr. 805000 (expended for the construction of the new auditorium 6 Investments a/c (was invested permanently, as directed by the donor) Cash a/c (the school received interest none of which was expended) 420000 To Cash 420000 19950 To Interest revenue unrestricted 19950