Type:Individual ProjectUnit:Not-for-Profit AccountingDue Date:Tue, 2/13/18Grading Type:NumericPoints Possible:100Points Earned:0Deliverable Length:3 pairs of journal entries with notesView objectives...

Type:Individual ProjectUnit:Not-for-Profit AccountingDue Date:Tue, 2/13/18Grading Type:NumericPoints Possible:100Points Earned:0Deliverable Length:3 pairs of journal entries with notesView objectives for this assignmentGo To:

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Assignment Description

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

1. 
   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.


2. 
   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?


3. 
   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?