Preparing Journal Entries
Instructions:
Contributions of long-lived assets may affect more than one type of fund.
Discovery Barn, a not- for- pro?t science center for children, received a contribution of $30,000 explicitly designated for the acquisition of computers. During the year it acquired $21,000 of computers, which it estimated to have a useful life of three years. It is the policy of the organization to charge an entire year's depreciation in the year of acquisition.
Prepare all required journal entries, being certain to indicate the type of fund in which each entry would be made.
Paper Requirements:
Submit your responses to the following questions in a 1-2 page document in MS Word. Label each question clearly. Please include computations in a table.
For written answers, please make sure your responses are grammatically correct and free from spelling errors.