Accounting Question

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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a. All pledges, in the given case, are legally enforceable. But as it is mentioned that 20% of the whole will be uncollectible. An NPO is allowed to recognize revenue when it uses the fund amount for any welfare activity, basically an activity that does not have a motive of profit.

 

The revenue for the Wilson Center will be:

Accounting homework question answer, step 1, image 1

The formulation:

 

Accounting homework question answer, step 1, image 2

Therefore, the Wilson Center will contribute $315,952 as revenue in the year 2017.

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