Recording of CD's and showing them restricted

HWessling · Post by **HWessling** » Wed Feb 23, 2005 9:41 pm

I have just taken over as treasurer and we are learning PowerChurch as well...thus the questions begin. I do have accounting background, but it has always been dealing with for profit businesses. Anyway, my first question is regarding the setup of Certificate of Deposits. We have several different Certificate of Deposits, but they are not listed as assets; therefore, they are not reflected on our previous statements. I set them up as Investments under Current Assets (they are all under 1 year maturity). Is this right? Next, these are also for Temporarily Restricted Funds. How I currently have these set up it is showing that we have Unrestricted Net Assets. Some of this amount should be restricted, right? I have not completed the initial setup. Is there a way that I can change this to reflect that these are Temporarily Restricted Funds?

Thanks!
Heather

Matt · Post by **Matt** » Sun Feb 27, 2005 11:10 pm

Heather,

Assuming you haven't completed the accounting setup yet, when you get to the part where the program asks you if you have any temporarily restricted funds you want to set up, go ahead and set up the temporarily restricted accounts you want. Then, finish the accounting setup. Once finished, you will need to go into Fund Accounting and enter transactions to transfer the balance from the Unrestricted Net Assets equity account to your temporarily restricted assets equity account.

HWessling · Post by **HWessling** » Mon Feb 28, 2005 7:16 am

Thanks! I ended up calling Technical Support and we discussed transferring the accounts. What recording entry would you use when you purchase a Certificate of Deposit? I want to make sure I start out doing at least some things right.

Thanks again!
Heather

Matt · Post by **Matt** » Mon Feb 28, 2005 8:55 pm

Assuming that you purchase the CD from cash in your checking account, you would make an entry like the following:

DR CD Account (Asset)
CR Checking Account (Asset)

This entry assumes that you purchase the CD using cash from the same fund. If you use different funds you will need to run the entry through the transfer accounts (preferred) or through the equity accounts.

HWessling · Post by **HWessling** » Mon Feb 28, 2005 9:07 pm

Thanks! That is what I thought.