Question

Girls Education, a non-profit promoting the formal education of girls in economically depressed areas, receives a contribution of $100,000 that the donor restricts to purchasing technology and books for the girls in FY 01. In FY 01, Girls Education purchases books for $1,000 and electronic readers for $20,000.

Required

Make all necessary journal entries to record the transactions for FY 01.

Answer 1

A.
Date	Account	Debit	Credit
	Cash	$              100,000.00
	Contribution-Restricted		$             100,000.00
B.
Date		Debit	Credit
	Books	$                  1,000.00
	Electronic Readers	$                20,000.00
	Cash		$               21,000.00
C.
Date		Debit	Credit
	Contribution-Restricted	$                21,000.00
	Books		$                 1,000.00
	Electronic Readers		$               20,000.00