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wool1
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Posted: 20 Jun 2012 at 12:02 \| IP Logged

A NFP Org receives $1000 from a donor. Donor receives two tickets to dinner with a fair market value of $150.
1) What amount should be recorded as contribtuion revenue?
2) what are the journal entries? (my question)

wool1
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Posted: 20 Jun 2012 at 12:23 \| IP Logged

WIley says contribution revenue is $850. I was wondering why it isn't $1000, but it makes sense to me now.

I initially thought:

Debit Cash 1000
Debit tickets expense 150
..............credit Contribution revenue 1000
..............credit Tickets 150

but I still wish to know if it's

Debit Cash 1000
..............credit Contribution revenue 850
..............credit Regular "exchange" revenue 150
Debit tickets expense 150
..............credit Tickets (an asset) 150

or

Debit Cash 1000
..............credit Contribution revenue 850
..............credit Tickets (an asset) 150

macpa7
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Posted: 20 Jun 2012 at 17:58 \| IP Logged

Hi...The entry would be...

Purchase of tickets for donor

Debit tickets expense 150
..............credit Cash 150

And then the entry for Contribution Rev. recd

Debit Cash 1000
..............credit Contribution revenue 850
..............credit Tickets Expense 150

Dont know about the Regular 'exchange'revenue A/c did you read it somewhere in the text

wool1
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Posted: 25 Jun 2012 at 19:59 \| IP Logged

well the wiley book says 850 is the contribution revenue, and since my textbook makes a discintction between ,,support,, and ,,revenue that comes from an exchange,, the remaining 150 must be some sort of revenue too.
Where Im confused I think all 1000 is support ie Contribution revenue becasue that was the intention of the donor . Wiley nets the value of tickets that was given in exchange, against the 1000.

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