Solved
Non cash donations
Hello there,
We are a small nonprofit and recently received a vehicle valued at over $20,000 from someone who effectively donated the car. We agreed to put $2 on the bill of sale (cash), for simplicity. The seller sees the vehicle as having been sold, however given its book value we are adding the vehicle as a fixed asset.
Does it make sense that, using a GJE, we need to credit our noncash donation account for the appraised value of the vehicle, and debit the fixed asset account for the vehicle?
Thanks so much in advance!