Question

Contributions of $19,500 received in 2013 but specified by donors for unrestricted use in 2014 were transferred from the temporarily restricted to the unrestricted net asset class in 2014. The journal entry required to record this transaction in 2014 is ________.

Answer 1

The journal entry required to record the transfer of contributions from the temporarily restricted to the unrestricted net asset class in 2014 is a debit to Unrestricted Net Assets and a credit to Temporarily Restricted Net Assets for $19,500.

Step-by-step explanation:

The journal entry required to record the transfer of contributions from the temporarily restricted to the unrestricted net asset class in 2014 would be as follows:

1. Debit Unrestricted Net Assets $19,500
2. Credit Temporarily Restricted Net Assets $19,500

This journal entry would reflect the transfer of the $19,500 received in 2013, which were specified by donors for unrestricted use in 2014, from the temporarily restricted category to the unrestricted category. It increases the unrestricted net assets and decreases the temporarily restricted net assets by the same amount.