In June 2016, the wealthy parents of a college sophomore pledge to donate $1.5 million...
90.2K
Verified Solution
Link Copied!
Question
Accounting
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 ______
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
