 In this presentation, we will record a cash donation into our not-for-profit organization. Get ready because here we go with zero. Here we are in our not-for-profit organization dashboard. We're going to go on over to our Excel sheet to see what our objective will be. So let's jump into Excel. We're going to be in the second tab, so tab number two, where we have a cash donation. Now we're going to record this all as like one lump sum donation, but you can imagine multiple different donations of cash, which would be resulting in a similar transaction. This possibly being one of our more current or frequent type of transactions, the cash donation. So what's going to happen? Well, cash is going to be increasing. So from a journal entry or account perspective, cash would then be going up. The other side's going to go to kind of like what would be our revenue type of account. We're going to call it the contributions account. And it's going to be a contributions without restrictions, the assumption being here that there has been no restrictions on the cash donation that has been given to us. Obviously, we are not for profit organization, which has two programs. That's our primary goal for the cash donations, but there's been no further restrictions other than to do our objective as the not-for-profit organization. Therefore, it goes into contributions without restrictions. If we take a look at our accounts then, in a trial balance format, the cash would then be increasing. The other side would be down here on the income statement side of things. So this is income. So this is a revenue account. Revenue is going up in the credit direction. And that would mean that net income would be increasing. Net income is increasing as well as we could see down below. So net income increases here. That's an increase. That's a credit increase in the credit direction. That's going to be our objective. Note, of course, as we see these income statement accounts on the statement of activities, we're going to want to start to break this information out into the statement of activities, those with donor restrictions and those without donor restrictions. But as of this point in time, we have no items without donor restrictions. So we're fairly straightforward here within our statement of activities with this added kind of dimension on it. Okay. So let's go back over to our journal entry and then we'll jump on into zero. Let's go back into zero here and we're going to use our standard form. So someone gave us money. We're going to go to our standard type of form. We're going to say plus button go down and we're going to say they receive money form. So we got the receive money type of form. We're going to be choosing the account this time, of course, being the checking account. Now here, do want to note that if you're, for example, receiving having some kind of thing going on where you're receiving many donations at one time and like, let's say they're cash donations and then you expect to go to the bank at the end of the day. You may then want to put them into the clearing account or some kind of clearing account, undeposited funds, let's say, and then transfer them into the checking account at the point of time that you take those deposits into the bank. Why? Because you want your system here in zero to be deposited in the same format as they will be shown on the bank statement and that will make your reconciliation comparing our checking account to the, to the bank statement easier to do. And that's going to be your objective. So just keep that in mind whenever you're entering deposits here, how can you group them in such a way that there will be the same format of grouping that will be shown on the bank statement so that you can compare those two, reconcile them very easily. But for purposes of this problem, we're going to go in and just put it right into the checking account. And then we're going to say next. And then here's going to be our receive payment form. So I'm going to just say this came from donor two. So this is a person. So we're imagining this is a person or organization that's giving us money. So donor two, because we're not for profit organization. So donor two, I'm going to say that this happens on the second. So I'm going to bring this back to January number two, January second. Then we're going to use our item. Now our items are straightforward. Now it's just going to be a donation. So I'm just going to say donation. So there's our item for the donation and then the amount. We can imagine multiple different amounts or multiple different donations of a similar transaction that would add up to the $189,700 for our practice problems. We're putting them all in one group sum. All donations we could see would be in this format. So then we have the contributions. That's correct because that's the revenue account being driven by this item. No sales tax, of course. And then restricted or unrestricted. This is going to be unrestricted. And then I'm going to start off by just putting them all into the fundraising. And then later on, we're going to go, we're going to go back in and make any adjustments we need to fundraising, probably fine with the revenue side of things. But with the expense side of things, we'll, we'll make an adjustment in accordance with our percentages. So we'll do that later. No restricted item here. So that looks like it. What's going to happen when we record this, it's going to increase the cash account this time, the checking account. The other side is going to be going to our contribution unrestricted in essence, our revenue accounts. We can also print this form out as some evidence of the contribution to our donor of the cash contribution if we so choose. And we can track this information by basically customer or donor to see what these donations have been. Let's go ahead and look at it. We're going to say save then going to go ahead and save this thing. And then we'll open up our reports. Let's go to the accounting drop down then we're going to go to the accounting drop down up top, we'll then open up the balance sheet will be opening up the balance sheet report one of our primary reports here. The dates let's change the dates to January 2020. So bringing this out to January 31, 2020, updating that report. Then we have now in the checking account that 189 700 on the equity side of things. We got the 189 700 because that's in the current earnings, which we'll also see on the income statement. So let's go back up top and let's let's go to the tab up top, right click on that tab duplicate that tab. It then is the balance sheet is on the right, we're going to go back to the left so that we can then open the income statement or other favorite report accounting drop down going down to the income statements. You may otherwise know it as the profit and loss or the P and L the not for profit name being the statement of activities, which will rename it later. That won't be a problem. The renaming won't be a problem of it. So we're going to say, all right, now we have the contributions unrestricted with the 225 500 and then the rent we had last time. Let's go into that 225 500 and drill down on it. So we'll zoom in on that number. See the activity within it to believe we have two items up at this point. So there's the donation one donation to we can obviously then go into that donation form. If we want to see the actual form, if we wanted to print this form, we can go to the options up top. We can go and view it as a PDF and print it as a PDF if we so choose going to go back out of it. I'm going to then go back and then back to our income statement. Let's duplicate this form then I'm going to right click on the income statement up top. I'm on the tab. I'm on the tab up top. I'm up here and I'm going to go ahead and duplicate that again. So we're going to go ahead and duplicate. Go back to the tab to the left. Let's go back to the accounting drop down. Let's then look at our reports again. Let's look at another report and then I'm going to go into the sales items hit the drop down and then we have our income by contact income by contact actually a better name than something like income by customer for our not for profit right income by contact because they're donors instead of customers and whatever. So here we have our income by by customer and then again this is another useful report for us to track the income by contact. Now we're going to jump back over to the income statement here and just note that we do have the groupings here and you might be saying well what are we doing with those categories we don't have anything broken out yet between the categories but just note that some of the filtering options we will see shortly is if we go to the report options down below this is where we have those two categories the restricted and the unrestricted. Now currently we're saying hey I'd like to see all of it you know all of the restricted and unrestricted what this means is like I want all of it included in in the income line so it's all included in this income line here it's all included here now if we have multiple columns if we want to set up multiple columns we can do so and we're going to do so by editing the report and it's zero is actually really nice to be able to do this it's a little bit more complicated to kind of edit the reports because they're not just fixed reports that are going to be broken out you know in a certain a few couple ways you have more customization it's a little bit more difficult to set up but once set up we can have more reflex ability because you'll recall what our objective will be of course is once we have this stuff on the income statement we want to we want to be able to present this in such a way that it's going to be easy for people to to pick up the information so if I scroll down we have these statement of activities has the two columns so we'd like to have something that's kind of broken out like this if we can customize it within the software and then be able to break out more detail such as the expenses being broken out by both nature and by function the flexibility with zero will allow us to do that because what we want to do is give something that's going to be a little bit more simplified at first to the board so they can make decisions on it and then add more detail with more detailed reports as we go so we'll get into that later once we start to break this information out into more categories than just simply the unrestricted which we have at this point that's going to be it for now let's get out of here