We received money to our bank account in late December 2020 for an endowment funded in early January 2021. During that interim period it was sitting in our bank, waiting to be moved by wire to Rose, the institution that is holding the endowment. I'm not entirely sure how to record this. Would this be the correct way to do it?
1. Receive that money in 2020 to a permanently restricted income account that we'll probably call Endowment.
2. Create an investment account in QuickBooks for Rose
3. Transfer the money in QuickBooks from our bank account to the investment account in 2021, still leaving it recorded under permanently restricted income.
Is that right? I've read a bunch of articles on this and still feel like I may not be thinking about it correctly.
Thanks to anyone who has any insight on this!
