Food Services FS collects food for distribution to people

in #90
Food Services (FS) collects food for distribution to people in need. During November 2013, its
first month of operations, the organization collected a substantial amount of food and also
$54,000 in cash from a very wealthy donor. The donor specified that the money was to be used
to pay down a loan that the organization had with the local bank.The loan had been taken out to
buy land, on which the organization plans to build a warehouse facility. A warehouse is needed
since, although the organization does not plan to keep a lot of food in stock, sorting and
distribution facilities are crucial. FS has also received $100,000, which according to the donor is
to be invested and maintained, with any income earned to be used as FS sees fit.Required-
Prepare the journal entries that FS would make assuming that it uses the deferral method of
accounting and does not maintain separate funds.-Prepare the statement of financial position
after the transactions have occurred.View Solution:
Food Services FS collects food for distribution to people in

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