My question is if funds where received in one year but are to be use in the next year. Will my journal entry at beginning of year be debit unrestricted net asset and credit temporary restricted net asset. Or do I have to set up another unrestricted net asset account. I need to be able to show that those funds were restricted last year and then released to be use this year. I know under MAS 90 I debit Fund Balance and credit Temporary Restricted funds then as they are use I debit Temporary Restricted funds and credit a Income to released from TR account. I just want to make sure I am doing it correctly on QuickBooks. Just trying to help a non-profit set things up. they just started in October and IRS has them calendar year.
Re: Journal Entries to set up temporary restiricted dunds
April 01, 2014 11:45PM
First of all, the Assets, Liabilities and Equity accounts do not change from one year to the next. Only the Income and Expenses do. The profit or loss rolls into Retained Earnings automatically from the Income and Expenses. If you set up an Unrestricted Asset account or Temporary Restricted Net Asset account the balances will still be in the accounts.

As for the entries you need to make, you need to ask your CPA as that is an accounting question, not a QuickBooks question.

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