E13.17 Contributions Received on Behalf of Others
The United Way receives contributions and distributes them toother NFP organizations. Some of its transactions for the currentyear are as follows:
1. Donors contribute $5 million, designated to specificunaffiliated NFP organizations. $3 million of this money isdistributed according to donor wishes during the current year.
2. Donors contribute $2 million, to be distributed tounaffiliated NFP organizations selected by United Way. United Waydistributes $1.8 million of these donations in the currentyear.
3. Donors contribute $1 million, to be distributed to a specificaffiliated organization. United Way distributes $900,000 of thesedonations in the current year.
Required
Prepare journal entries to record the above activities. If theitem affects net assets, identify the category affected.
