If a donor selects a scholarship recipient, and then donates cash to a ballet school to fund that scholarship, the ballet school would:

Question

Quizplus · Accepted Answer

Generally, if the not-for-profit organization agrees to transfer the assets to a specified beneficiary, the organization is deemed to be an agent and a liability is recorded. The journal entry would be a debit to cash and a credit to a liability.

If a Donor Selects a Scholarship Recipient, and Then Donates