\n
\nby Charlie
\n
(NH)\n<\/p>\n
\nOur church is going through mold remediation. Our total restricted earmarked funds are currently at $65,000. <\/p>\n
I know how to handle restricted funds. I know how to handle capital expenditures. What I can’t figure out is how to account for them on the books when I need to add it to Fixed Assets. Example: chairs purchased for $10,000. <\/p>\n
Normally, the receiving of the restricted fund would debit cash and credit restricted fund. Then the expenditure would debit restricted fund and credit cash. You keep a running total of what is left of the restricted fund on the balance sheet.<\/p>\n
However, for a capital asset expenditure (the chairs)…to correctly account for it, I have to debit fixed asset account and credit cash. <\/p>\n
But this does not decrease the restricted fund. The only way I can decrease restricted funds is to make a journal entry to debit restricted fund and credit Donations Revenue (which shows an increase on the P&L).<\/p>\n
I am not sure this is correct. Has anyone run into this before?\n<\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"
by Charlie (NH) Our church is going through mold remediation. Our total restricted earmarked funds are currently at $65,000. I know how to handle restricted funds. I know how to handle capital expenditures. What I can’t figure out is how to account for them on the books when I need to add it to Fixed […]<\/p>\n","protected":false},"author":1,"featured_media":115653,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11759],"tags":[25859,10958,6810,11257,66229],"dealstore":[],"offerexpiration":[],"class_list":["post-227707","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accounting","tag-assets","tag-buying","tag-capital","tag-funds","tag-restricted"],"yoast_head":"\n
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