Baseball for All (BFA)is a not-for-profit organization that runs baseball tournaments and clinics for all ages. It also buys equipment needed at the tournaments. It receives government funding from the municipality, and tournament and clinic fees are paid by participants. Generally, annual revenues have been $350,000. This year, BFA received a special grant of $150,000 to buy new equipment. Equipment in the amount of $180,000 was purchased. The equipment is expected to last five years.
Required:
Discuss the various methods that BFA can use to record the purchase of the equipment allowed under the CICA Handbook-Part III and prepare the appropriate journal entries. As part of your explanation, explain the differences between the expenditure basis and expense basis of reporting.

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The Answer of Baseball for All (BFA)is a not-for-profit organization that runs baseball tournaments and clinics for all ages. It also buys equipment needed at the tournaments. It receives government funding from the municipality, and tournament and clinic fees are paid by participants. Generally, annual revenues have been $350,000. This year, BFA received a special grant of $150,000 to buy new equipment. Equipment in the amount of $180,000 was purchased. The equipment is expected to last five years.
Required:
Discuss the various methods that BFA can use to record the purchase of the equipment allowed under the CICA Handbook-Part III and prepare the appropriate journal entries. As part of your explanation, explain the differences between the expenditure basis and expense basis of reporting.

Baseball for All (BFA)is a Not-For-Profit Organization That Runs Baseball