10-16. The Association of Women in Government established an Educational Foundation to raise money to support scholarship and other education initiatives. The Educational Foundation is a private not-for-profit. Members of the Association of Women in Government periodically make donations to the Educational Foundation. With the exception of the gift described below, these are unrestricted. In December 2019, a donor established a permanent endowment with an initial payment of $120,000 and a pledge to provide $10,000 per year for three years, beginning in December 2020. At the time, the pledge was recorded at the present value ($27,232), discounted at 5 percent. Earnings of the endowment (interest and investment gains) are derived from investment in AAA-rated corporate bonds and are restricted for the payment of scholarships. At the end of 2019, the organization had the following account balances: Account: Cash Interest receivable Investment in bonds Pledges receivable Supplies inventory Scholarships payable Net assets with donor restrictions-endowment Net assets with donor restrictions-scholarships Net assets without donor restrictions Totals Debits Credits $ 22,900 700 120,000 27,232 400 $ 5,000 147,232 2,600 16,400 $171,232 $171,232