In June 2016, the wealthy parents of a college sophomore pledge to donate $1.5 million to the college she attends, making payments of $0.5 million at the end of each of her remaining years at the school until her expected graduation in 2019. The college applies a discount rate of 3 percent. At that rate, the present value of $1 for three periods is $2.82861. What entry, if any, would be required to recognize the pledge? What entry(ies), if any, would be required to record the receipt of the first $0.5 million at the end of year 2016? Assume that the college uses separate funds to track restricted resources and indicate in which fund each entry is made.

June 2016

Debit ____ for amount____

Credit ____ for amount _____

June 2017

Debit _____ for amount_____

Credit ______ for amount _____

Debit _____ for amount _____

Credit _____ for amount _____

Credit _____ for amount ______