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TGF Care Facility (TGF) is a not-for-profit organization (NFPO) that was established on April 1, 20X6. Its mandate is to provide rehabilitation services to people with spinal-cord injuries. A select list of TGF's transactions during its first year of operations follows.
Problem 1: Assume that TGF uses the deferral method to account for contributions and does not disclose separate funds. Which of the following would be included in the journal entries to record the land transactions in June 20X6?
a) A net debit to the land account for $200,000 b) A net debit to net assets for $10,000 c) A net credit to deferred contributions for $200,000 d) A net credit to net assets for $200,000
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