T-Account and Journal entry

Type: Individual Project Unit: Not-for-Profit Accounting Due Date: Sun, 10/16/16 Grading Type: Numeric Points Possible: 100 Points Earned: 0 Deliverable Length: 3 pairs of journal entries with notes

 

 

 

Assignment Details

Assignment Description

You are a believer that new employees should practice their accounting skills before “throwing them into the fire.” Therefore, you have listed a series of transactions that require journal entries and updating of T-Accounts.

You know that preparing nonprofit journal entries are easy, so you ask the new employee to

prepare, side by side, the correct journal entry for the identical transaction: once for a nonprofit entity once for a for-profit company include notes for each transaction

1. Transaction 1: Assume a nonprofit has a restricted fund for capital asset purchases. Compare the journal entries for the cash purchase of a $10,000 computer by the nonprofit, to how the journal entry would look for this for-profit. 2. Transaction 2: Assume that a nonprofit has a need for $80,000 for a particular new marketing expenditure, and a for-profit entity needs to raise an additional $80,000 to pay for some unanticipated marketing expenses. How would the journal entities look at the acquisition of the funds and the subsequent spending of the funds? 3. Transaction 3: The for-profit entity sells $120,000 with net 30-day terms, while the nonprofit entity has a fund raising drive for which they receive pledges of $120,000. How do the two journal entries look?

Please submit your assignment.

Your assignment will be graded in accordance with the following criteria. Click here to view the grading rubric.

For assistance with your assignment, please use your text, Web resources, and all course materials