Accounting for Contribution Revenue
Hannon University, a private, nonprofit university, receives a letter from an alumnus
who pledges $ for the establishment of a center for public service. The
donor expresses the wish that the amount be used in the next fiscal year, but the donor's
letter does not identify any barriers to be overcome or identify a right of release.
Based on history, Hannon University expects to collect of the pledged amount.
Record the journal entry that would be recorded upon receipt of the letter.
Enter accounts in order of magnitude largest to smallest amounts debits first.
How would the pledge have been recorded if Hannon University were a public university?
The pledge would not have been recorded.
