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.
Prepare journal entries for these transactions, assuming HOU is using the deferral method for the $11,000 restricted contribution made on January 1, 2020 that was used to acquire the fixed assets. Indicate the fund or funds 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.
Prepare journal entries for these transactions, assuming HOU is using the deferral method for the $11,000 restricted contribution made on January 1, 2020 that was used to acquire the fixed assets. Indicate the fund or funds used.

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