Answer to Question #182150 in Accounting for Milan

Question

Debit Cash

Credit Refundable Advance

• What does this journal entry mean?

Debit Refundable Advance

Credit Pledge receivable - with donor restrictions

Credit Revenue - with donor restrictions

• What does this journal entry mean?

Debit Cash - with donor restrictions

Credit Pledge receivable - with donor restrictions

• What does this journal entry mean?

Debit Satisfaction of use restriction - with donor restriction

Credit Cash - with donor restriction

• What does this journal entry mean?

Debit Cash - without donor restrictions

Credit Satisfaction of use restriction - with donor restriction.

• What does this journal entry mean?

Debit Construction in progress

Credit - without donor restrictions

• What does this journal entry mean?

If you debit Refundable Advance, what account would you normally credit associated with the Refundable Advance?

Answer 1

• refund of the paid loan (maybe more was paid)
• refund of the paid advance payment
• receipt of cash on collateral receivables
• payment in cash on satisfaction of vesting restrictions; withholding of taxes
• cash refunds from satisfaction of vesting restrictions; tax deductions
• construction costs, investments in assets

Debit Settlements with customers subaccount "Advances received" Credit Other income and expenses

If the uncollectible receivables were formed as a result of the transfer of an advance to the supplier, these transactions should be recorded in the accounting records: Debit Other income and expenses Credit Settlements with suppliers subaccount "Advances issued".