Reference no: EM132978990
Problem - Fund Accounting - Entity A receives the following donations:
Cash of P2,000,000 to be used at the discretion of Entity A's Management.
Cash of P3,000,000 restricted for the acquisition of equipment.
Trust fund of P5,000,000 which Enity A shall never use; only the income therefrom.
Enitity A acquires an equipment for P3,000,000 and receives cash dividends of P200,000 from the investment at the end of the period.
Requirements -
A. Record the transactions above under a fund Accounting.
B. Compute for the ending balances of unrestricted, temporarily restricted, and permanently restricted net assets.