Record equipment purchase and amortization

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Reference no: EM13526969

Do-Good Society is a not-for-profit organization formed on January 1, 20X2. On its first day of operations, a donor made an unrestricted fund contribution of $20,000 and Do-Good Society used part of this money to purchase equipment costing $8,000. The equipment is estimated to have a useful life of four years and be worthless at the end of that time. There were no other activities in the donations or purchases of this type for the balance of the year. Which fund would be used to record equipment's purchase and amortization?

1. The general fund
2. The operating fund
3. The capital fund
4. A different fund

Reference no: EM13526969

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