[Nevergiveup2012]

I am desperately in need of help with the basic not-for-profit journal entries specifically when the funds are restricted (for a specific purpose). I read Becker book many times but I still don’t understand. I am so confused with the terms that are used because I find them not consistent.

Can you help list various basic journal entries? 1) when fund is received 2) when purchase is made 3)reclass from restricted to unrestricted.

Also, what’s the difference between Restricted Revenue and Temporarily restricted net assets? I don’t know how they are used. My thought was, increase in restricted revenue = increase in restricted net assets. Am I correct?

Thank you!!!

BEC - 86 (8/31/12)
AUD - 97 (11/18/12)
REG - 83 (5/12/13)
FAR - 91 (12/2/13)
Done!!!

[Amay]

Net Assets Year End Bal. = Net Assets Beg. Bal + contributions (revenue) – releases of contributions (expenses)

This is the same formula for either restricted, unrestricted, or permanently restricted. Contributions received increase revenue and decrease net assets balance (your funds at the beginning of the year) and releases of contributions (or using the funds) decrease net assets.

If the contribution is temporarily restricted it should increase temp. restricted net assets balance.

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Amay]

Net Assets Year End Bal. = Net Assets Beg. Bal + contributions (revenue) – releases of contributions (expenses)

This is the same formula for either restricted, unrestricted, or permanently restricted. Contributions received increase revenue and decrease net assets balance (your funds at the beginning of the year) and releases of contributions (or using the funds) decrease net assets.

If the contribution is temporarily restricted it should increase temp. restricted net assets balance.

BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀

*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂

[Author]

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