Recording journal entries for nonprofits Prepare journal entries to record the transactions in Exercise E13-26.
1. Donor A gave a nonprofit a $50,000 cash gift in June 2019, stipulating that the nonprofit could not use the gift until 2020.
2. Donor B gave a nonprofit a $25,000 cash gir in July 2019, telling the nonprofit the gift could be used only for a reasearch on a specific project.
3. In response to a special fundraising campaign, whereby contributions could be used only for construction of a new warehouse, a large number of induviduals promised to make cash contributions totaling $2 million in 2019. The nonprofit believes it will actually collect 80 percent of the promised cash.
4. Donor C gave a nonprofit seveeral investments having a fair value of$3 million in March 2019. Donor C stipulated that the nonprofit must hold the gift in perpetuity, but it could use the income from the gift for any purpose the trustees considered appropriate. Between March and December, the investments produced income of $100,000.
5. Using the resources raised in Transaction 3, a nonprofit paid an architect $50,000 in 2019 to make preliminary designs for a new building.