• For example, The Helping Hand entity received $90,000 in unconditional pledges that will be collected five years from the current date. Applying a 3 percent present value rate to the amount, the Helping Hand recorded the following journal entry: Contributions 90,000 Receivable Contributions-With Donor Restrictions 77,634 Discount on Contributions Receivable 12,366

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

How do you calculate this?

 

• For example, The Helping Hand entity received $90,000 in
unconditional pledges that will be collected five years from the
current date. Applying a 3 percent present value rate to the amount,
the Helping Hand recorded the following journal entry:
Contributions
Reteivable
90,000
Contributions-With Donor
Restrictions
77,634
Discount on Contributions
Receivable
12,366
Transcribed Image Text:• For example, The Helping Hand entity received $90,000 in unconditional pledges that will be collected five years from the current date. Applying a 3 percent present value rate to the amount, the Helping Hand recorded the following journal entry: Contributions Reteivable 90,000 Contributions-With Donor Restrictions 77,634 Discount on Contributions Receivable 12,366
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Analytical Techniques
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
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education