2 not for profit accounting ip 326411

3 pairs of journal entries with notesAPA formatted References

You are 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.

The following grading criteria will apply to this assignment: