In 2020, Farm Sanctuary's capital campaign raised $500,000 in cash for a new barn at its sanctuary for rescued farm animals in Watkins Glen, NY. Construction began in 2021 and the barn was completed at a cost of $500,000 and placed into service on July 1, 2021. The barn's estimated useful life is 25 years, and Farm Sanctuary's accounting year ends December 31.
Required
Prepare journal entries to record the events described for 2020 and 2021. If an account affects net assets, indicate which category of net assets is affected.

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The Answer of In 2020, Farm Sanctuary's capital campaign raised $500,000 in cash for a new barn at its sanctuary for rescued farm animals in Watkins Glen, NY. Construction began in 2021 and the barn was completed at a cost of $500,000 and placed into service on July 1, 2021. The barn's estimated useful life is 25 years, and Farm Sanctuary's accounting year ends December 31.
Required
Prepare journal entries to record the events described for 2020 and 2021. If an account affects net assets, indicate which category of net assets is affected.

In 2020, Farm Sanctuary's Capital Campaign Raised $500,000 in Cash