How to record sale of fundraising items?

[R.V.Fagan]

As a fundraiser we purchased grocery certificates that we sell. Does PowerChurch have an elegant way to track it?

We are just getting PC+ up and running, so I journaled as below to make the balance sheet look right.
Debit : Asset : 01-1910-000 (Grocery Certificates) : $20,000
Credit : Equity Temp Restricted : 01-3115-000 (Grocery Certificates) : $20,000

When we sell some certificates from time to time, how should we record it? By journal?
Debit : Asset : 01-1110-000 (Bank Account) : $1,000
Credit : Asset : 01-1910-000 (Grocery Certificates) : $1,000
Credit : Income Temp Restricted : 01-4210-104 Church Renovations : $1,000
Debit : Equity Temp Restricted : 01-3115-000 (Grocery Certificates) : $1,000

I appreciate any suggestions, or comments re pitfalls that might bite me.

[JohnDMeyers]

You purchased the grocery certificates with church money, I presume (as opposed to having them donated at no expense), right?

Also, are you selling them dollar-for-dollar, or are you making a little extra on them, and if so, how much per dollar of certificate?

PS. don't make those transactions above! You should not have to directly debit or credit your equity account.

[R.V.Fagan]

The certificates were purchased, not donated. We are making a profit on them of about 5%. Normally the profit would be recognized at time of purchase - we get $20K for $19K. However, as noted, I am just trying to get the existing $20 into the PC+ system for the first time.

The issue this they have to stay on our books as equity until we sell them, typically in lots of $25, $50, or $100. They sit as equity, and must be moved to cash in the bank. The method of entry when selling is my dilemma.

[JohnDMeyers]

Here's how I would do it from the beginning, which starts when$20,000 of money comes into your church as donations for tithes.

I think the key is seeing that you cannot record income twice. You can only record the original tithe, and the profit, as income, as shown below:

Create in Chart of Accounts:
01-1910-000 grocery certificate assets
01-3210-101 grocery restriction equity
01-4210-101 grocery certificate restricted income <--- closes to 01-3210-101
01-4810-101 grocery release income <----closes to 01-3210-101
01-4122-000 grocery profit income <----closes to 01-3110-000

Receive original tithes:
DB 01-1110-000 checking $20,000 <----tithes and offerings received
CR 01-4110-000 tithes $20,000 <--closes to 01-3110-000 unrestricted net assets

Buy Grocery Certificates
CR 01-1110-000 checking: $20,000
DB 01-1910-000 grocery certificates $20,000

Put restriction on tithes:
DB 01-4110-000 tithes $20,000 <---closes to 01-3110-000
CR 01-4210-101 grocery restricted income $20,000 <--closes to 01-3210-101

Receive sale of $1000 ($950 cost, $50 profit):
DB 01-1110-000 checking $1000
CR 01-1910-000 grocery asset $950
CR 01-4122-000 grocery profit income $50 <--- this is the only "new" income

Release restriction on $950
DB 01-4810-101 grocery release $950 <--closes to 01-3210-101
CR 01-4999-000 general release $950 <---closes to 01-3110-000