Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On January 1, 2020, a foundation made a pledge to pay $43,000 per year at the end of each of the next five years to
On January 1, 2020, a foundation made a pledge to pay $43,000 per year at the end of each of the next five years to the Cancer Research Center, a nonprofit voluntary health and welfare organization, as a salary supplement for a well-known researcher. On December 31, 2020, the first payment of $43,000 was received and paid to the researcher. 1. On the books of the Cancer Research Center, record the pledge on January, assuming the appropriate discount rate is 5 percent on an annual basis. The appropriate present value annuity factor is 4.32948. 2. Record the increase in the present value as of December 31. 3. Record the receipt of the first $43,000 on December 31 and the payment to the researcher. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round intermediate calculations and final answers to the nearest whole dollar.) X Answer is complete but not entirely correct. No Transaction General Journal Debit Credit 1 01 Contributions Receivable 186,190 X Contributionswith Donor Restrictions 186,190 X 2 02 9,310 Contributions Receivable Contributionswith Donor Restrictions olol 9,310 X 3 Cash 43,000 Contributions Receivable 43,000 4. 3b Reclassification from Net Assets with Donor Restrictionsfor Expira 43,000 Reclassification to Net Assets without Donor Restrictionsfor Er 43,000 5 3c 43,000 Research Expense: Salary Supplement Cash 43,000
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started