Question

Record the journal entry the would be made by a nongovernmental, not-for-profit organization involved in medical research. (If no entry is required for a transaction choose "No Journal Entry Required" in the first account field.)

1. The entity received $1,500 in cash contributions. Of that amount, $1,000 is to be used for medical research.

2. The entity received pledges of $700,000 for its endowment fund. All pledges will be collected next year.

3. The entity received donated services of $1,200 from medical researchers who helped with the entity's on-going drug development research. It also received $300 in donated services from students, who helped clean the research facilities.

4. The entity paid medical research operating expenses of $5,000 that were related to restricted net assets it had received in prior years.

Answer 1

SOLUTION:

#	Particulars	Debit	Credit
1	Cash	1,500
	Contributions—Unrestricted		500
	Contributions—Temporarily Restricted		1,000
2	Pledges Receivable	700,000
	Contributions—Permanently Restricted		700,000
3	Medical Research Program Expenses	1,200
	Contributions—Unrestricted		1,200
4	Medical Research Program Expenses	5,000
	Cash		5,000
	Net Assets Release - Satisfaction of Program Restrictions - Temporarily Restricted	5000
	Net Assets Released- Satisfaction of     Program Restrictions- Unrestricted		5,000