The following are selected transactions for HELP-ON-US (HOU), an NFPO for 2020. HOU uses the restricted fund method of accounting for contributions. HOU has an operating fund, a capital fund and an endowment fund.
On January 1, the organization purchased fixed assets at a cost of $10,000. The assets were estimated to have a useful life of 5 years with no residual value. Straight-line amortization is used.
Assuming that the assets were purchased from a restricted contribution that was made on January 1, 2020 in the amount of $11,000, prepare the required journal entries for 2020, indicating the fund or funds to be used.

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The Answer of The following are selected transactions for HELP-ON-US (HOU), an NFPO for 2020. HOU uses the restricted fund method of accounting for contributions. HOU has an operating fund, a capital fund and an endowment fund.
On January 1, the organization purchased fixed assets at a cost of $10,000. The assets were estimated to have a useful life of 5 years with no residual value. Straight-line amortization is used.
Assuming that the assets were purchased from a restricted contribution that was made on January 1, 2020 in the amount of $11,000, prepare the required journal entries for 2020, indicating the fund or funds to be used.

The Following Are Selected Transactions for HELP-ON-US (HOU), an NFPO