Here we recognize the contributions for the 2000 Spring Fling event that were deferred on the 1999 statements, and we set up deferred contributions received in 2000 for the 2001 event.
In the fall of 1999, $200 was received for the 2000 Spring Fling. We can see in our opening balances that $200 was appropriately recorded as a deferred contribution in the 1999 statements. We have at least $200 of Spring Fling expenses in 2000 and can therefore now recognize this revenue. We record the following entry:
|Deferred contributions - SF||200|
|Spring Fling revenue||200|
In the fall of 2000, $300 was received in contributions for the 2001 Spring Fling program. Currently this is recorded as revenue of the year 2000 on a cash basis. We need to remove this from the year 2000 revenue and record the deferred contribution:
|Spring Fling revenue||300|
|Deferred contributions - SF||300|