Transactions: The following selected transactions occurred for a nongovernment, not-for-profit organization. All amounts are in thousands of dollars.
1. Received a contribution of stock to establish an endowment fund. The income from the endowment is unrestricted. The donor had acquired the stock for $23 about 20 years earlier. Its estimated fair value when donated was $250.
2. Pledges receivable at year end were $100, all from pledges received during the year. The pledges are unrestricted and 5% percent of the pledges are estimated to be uncollectible. The pledges expect to be collected early next year.
For questions 3-5, assume that the organization has adopted a policy that restrictions on donations made for capital purposes are met when the capital item is purchased.
3. A cash gift of $200 was received restricted for the purchase of equipment.
4. Equipment of $80 was purchased from the gift restricted for this purpose.
5. Depreciation expense for the year on the equipment purchased is $10.
For questions 6-8, assume that the organization has adopted a policy that restrictions on donations made for capital purposes are not met when the capital item is purchased.
6. A cash gift of $200 was received restricted for the purchase of equipment.
7. Equipment of $80 was purchased from the gift restricted for this purpose.
8. Depreciation expense for the year on the equipment purchased is $10.
Requirement: Prepare the journal entries for the above transactions.

Question

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The Answer of Transactions: The following selected transactions occurred for a nongovernment, not-for-profit organization. All amounts are in thousands of dollars.
1. Received a contribution of stock to establish an endowment fund. The income from the endowment is unrestricted. The donor had acquired the stock for $23 about 20 years earlier. Its estimated fair value when donated was $250.
2. Pledges receivable at year end were $100, all from pledges received during the year. The pledges are unrestricted and 5% percent of the pledges are estimated to be uncollectible. The pledges expect to be collected early next year.
For questions 3-5, assume that the organization has adopted a policy that restrictions on donations made for capital purposes are met when the capital item is purchased.
3. A cash gift of $200 was received restricted for the purchase of equipment.
4. Equipment of $80 was purchased from the gift restricted for this purpose.
5. Depreciation expense for the year on the equipment purchased is $10.
For questions 6-8, assume that the organization has adopted a policy that restrictions on donations made for capital purposes are not met when the capital item is purchased.
6. A cash gift of $200 was received restricted for the purchase of equipment.
7. Equipment of $80 was purchased from the gift restricted for this purpose.
8. Depreciation expense for the year on the equipment purchased is $10.
Requirement: Prepare the journal entries for the above transactions.

Transactions: the Following Selected Transactions Occurred for a Nongovernment, Not-For-Profit