A well-known celebrity sponsored a telethon for the Help for the Blind Foundation on November 1, 2015. Pledges in the amount of $1,020,000 were called in. Using similar telethon campaigns as a basis, it is estimated that 20% of the pledges will be uncollectible. During 2016, $691,000 of contributions from these pledges were collected. The remainder were uncollectible. Identify the appropriate fund and prepare the journal entries necessary in 2015 and 2016 to record these transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
A well-known celebrity sponsored a telethon for the Help for the Blind Foundation on November 1, 2015. Pledges in the amount of $1,020,000 were called in. Using similar telethon campaigns as a basis, it is estimated that 20% of the pledges will be uncollectible. During 2016, $691,000 of contributions from these pledges were collected. The remainder were uncollectible. Identify the appropriate fund and prepare the journal entries necessary in 2015 and 2016 to record these transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
A well-known celebrity sponsored a telethon for the Help for the Blind Foundation on November 1, 2015. Pledges in the amount of $1,020,000 were called in. Using similar telethon campaigns as a basis, it is estimated that 20% of the pledges will be uncollectible.
During 2016, $691,000 of contributions from these pledges were collected. The remainder were uncollectible.
Identify the appropriate fund and prepare the journal entries necessary in 2015 and 2016 to record these transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
|
Date
|
Account Titles and Explanation
|
Debit
|
Credit
|
|
|
|||
|
2015
|
|
|
|
|
|
|
|
|
|
(To record gross amount of campaign pledges)
|
|||
|
|
|
|
|
|
|
|
|
|
|
(To record provision for estimated uncollectible pledges)
|
|||
|
2016
|
|
|
|
|
|
|
|
|
|
(To record contributions collected)
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(To record uncollectible pledges)
|
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education