Question
On January 1, 2020, a foundation made a pledge to pay $65,000 per year at the end of each of the next five years to
On January 1, 2020, a foundation made a pledge to pay $65,000 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 $65,000 was received and paid to the researcher.
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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.
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Record the increase in the present value as of December 31.
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Record the receipt of the first $65,000 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.)
Entry 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 4.33.
Entry 2
Record the increase in the present value as of December 31.
Entry 3
Record the receipt of the first $65,000 on December 31.
Entry 4
Record the entry for reclassifying the net assets.
Entry 5
Record the entry for salary supplement paid to researcher.
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