The United Way receives contributions and distributes them to other NFP organizations. Some of its transactions for the current year are as follows:
1) Donors contribute $6 million, designated to specific unaffiliated NFP organizations. $5 million of this money is distributed according to donor wishes during the current year.
2) Donors contribute $1.2 million, to be distributed to unaffiliated NFP organizations selected by United Way. United Way distributes $900,000 of these donations in the current year.
3) Donors contribute $600,000, to be distributed to a specific affiliated organization. United Way distributes $590,000 of these donations in the current year.
Required
Prepare journal entries to record the above activities. If the item affects net assets, identify the category affected.

Question

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The Answer of The United Way receives contributions and distributes them to other NFP organizations. Some of its transactions for the current year are as follows:
1) Donors contribute $6 million, designated to specific unaffiliated NFP organizations. $5 million of this money is distributed according to donor wishes during the current year.
2) Donors contribute $1.2 million, to be distributed to unaffiliated NFP organizations selected by United Way. United Way distributes $900,000 of these donations in the current year.
3) Donors contribute $600,000, to be distributed to a specific affiliated organization. United Way distributes $590,000 of these donations in the current year.
Required
Prepare journal entries to record the above activities. If the item affects net assets, identify the category affected.

The United Way Receives Contributions and Distributes Them to Other