1, 2020, a foundation made a pledge to pay $19,000 per year at the end of each of enter, a nonprofit voluntary health and welfare organization, as a salary supplement 31, 2020, the first payment of $19,000 was received and paid to the researcher. ooks of the Cancer Research Center, record the pledge on January, assuming the a al basis. The appropriate present value annuity factor is 432948
1, 2020, a foundation made a pledge to pay $19,000 per year at the end of each of enter, a nonprofit voluntary health and welfare organization, as a salary supplement 31, 2020, the first payment of $19,000 was received and paid to the researcher. ooks of the Cancer Research Center, record the pledge on January, assuming the a al basis. The appropriate present value annuity factor is 432948
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 10-11 (Algo)
On January 1, 2020, a foundation made a pledge to pay $19,000 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 $19,000 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 $19,000 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.)
View transaction list
Journal entry worksheet
<
1
2
Transaction
01
3 4
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.
Note: Enter debits before credits.
Record entry
5
General Journal
Clear entry
Debit
Credit
View general journal
>
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