Question

George H. Ruth takes a leave of absence from his job to work full time for a charity for six months. Ruth fills the position of finance director, a position that normally pays $88,000 per year. Ruth accepts no remuneration for his work. What recording does the charity make

Answer 1

Answer: a contributed support of $44000 and a expense of $44000.

Step-by-step explanation:

From the information given in the question, we are informed that Ruth fills the position of finance director, a position that normally pays $88,000 per year.

Therefore, the amount earned for six months will be:

= $88000 × ½

= $44000

Therefore, the recording of the transaction will be a contributed support of $44000 and a expense of $44000.