In which fund would the purchase of the asset be recorded?
Do-Good Inc. is a newly formed not-for-profit organization. On January 1, 2018, its first day of operations, Do-Good purchased equipment costing $8,000. The equipment is estimated to have a useful life of 4 years, with no residual value at that time. This transaction was the only transaction that took place to date. The equipment was purchased from an unrestricted contribution of $8,000.
A) The Encumbrance Fund. B) The Operating Fund.
C) The Capital Fund. D) The General Fund.
C) The Capital Fund.
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