The Abracadabra School of Public Affairs held its annual Fellowship Dinner on October 29, 2022. The event raised $650,000 in pledges and cash contributions. As of November 30th, the school had received $550,000 of the $650,000.

a. The Director of Finance and Administration projects 8 percent of all pledges would not be collected. How much should the Abracadabra School report in pledges receivable?

b. Following a successful fundraiser event, School Director Joe Magician awarded current and incoming students $390,000 in financial aid and support beginning July 2023. What impact, if any, would this transaction have on the Schools assets, liabilities, and or net assets? Be sure to identify whether they are affected negatively (-) or positively (+).

Based on the information about Ann Arbor and directions given in the first paragraph of Question 2, consider the following: During fiscal 2022 the city levied property taxes of $173,000, of which it collected $145,000 prior to June 2022, and $5,000 over each of the next six months. It is estimated that $3,000 will be uncollectible. (Please present the fundamental equation for governments, i.e., Assets = Liabilities + Fund Balance. Make negative and/or positive numeric adjustments to the equation.)