An NNO obtained cash for the acquisition of property and equipment as follows:
These funds are used to acquire land.In addition,$20,000 in principal and $2,000 in interest is paid on indebtedness relating to property and equipment.Depreciation on property and equipment for the year is $80,000.
Required:
Prepare all necessary entries in the affected funds of the NNO,assuming that the NNO is a:
a.Voluntary health and welfare organization.
b.University.
c.Hospital.

Question

An NNO obtained cash for the acquisition of property and equipment as follows:
  These funds are used to acquire land.In addition,$20,000 in principal and $2,000 in interest is paid on indebtedness relating to property and equipment.Depreciation on property and equipment for the year is $80,000.
Required:
Prepare all necessary entries in the affected funds of the NNO,assuming that the NNO is a:
a.Voluntary health and welfare organization.
b.University.
c.Hospital.

Quizplus · Accepted Answer

The Answer of An NNO obtained cash for the acquisition of property and equipment as follows:
  These funds are used to acquire land.In addition,$20,000 in principal and $2,000 in interest is paid on indebtedness relating to property and equipment.Depreciation on property and equipment for the year is $80,000.
Required:
Prepare all necessary entries in the affected funds of the NNO,assuming that the NNO is a:
a.Voluntary health and welfare organization.
b.University.
c.Hospital.

An NNO Obtained Cash for the Acquisition of Property and Equipment