Aliberry Research Foundation Is a Large Non-Profit Organization That Funds

Essay

Aliberry Research Foundation is a large non-profit organization that funds research into a variety of financial instruments. Annual revenues are in excess of $15 million. It has an endowment fund, a general fund and a capital fund. You have just been appointed treasurer of its Board and the accountant has come to you with a variety of questions. Aliberry received a large endowment of $3 million on January 31, 2013. During the year ended 2013, there was interest earned of $120,000.
Required:
Prepare the journal entries required to record the receipt of the endowment and the interest earned assuming the entity uses the restricted fund method.