Answer:
JOURNAL ENTRIES
a) Debit investment $160,000 Credit Unrestricted Cash $160,000
b) Debit Permanent Restrictions cash $80,000 Credit Donations received $80,000
c) Debit Medicine Asset (on hand) $25,000 Credit $25,000 Restricted cash $25,000
d) Debit Accounts receivables $600,000 Credit N.G.O Revenues $600,000
e) Debit depreciation $38,000 Credit Accumulated depreciation $38,000
f) Debit Restricted Cash $15,000 Credit Interest income $15,000
g) NO entry ( estimate and future action)
h) Medicine expense $25000 Credit Medicine asset $25000
i) Debit Restricted Cash $172,000 Credit Investment $160,000, Credit Gain on sale of investment $12,000
Debit Equipment $187000 Credit Restricted cash $187000
j) no entry ( just promises)
UNRESTRICTED CASH
a) investment - 160000
RESTRICTED CASH (TEMPORAL)
c) Medicine -25000
f) Interest +15000
i) sold investment + 172000
= 162000
Restricted cash permanent
b) Donations +80000
Explanation:
EQUIPMENT = Temporal restricted cash = 162000+25000 = $187,000
The donation's money is restricted only to donations
