Wilson Center is a private not-for-profit voluntary health and welfare entity. During 2017, it received unrestricted pledges of $600,000, 60 percent of which were payable in 2017, with the remainder payable in 2018 (for use in 2018). Officials estimate that 15 percent of all pledges will be uncollectible. a. How much should Wilson Center report as contribution revenue for 2017? (Ignore time value calculations.) b. In addition, a local social worker, earning $20 per hour working for the state government, contributed 600 hours of time to Wilson Center at no charge. Without these donated services, the organization would have hired an additional staff person. How should Wilson Center record the contributed service? a. Contribution revenue b. Contributed service
Wilson Center is a private not-for-profit voluntary health and welfare entity. During 2017, it received unrestricted pledges of $600,000, 60 percent of which were payable in 2017, with the remainder payable in 2018 (for use in 2018). Officials estimate that 15 percent of all pledges will be uncollectible. a. How much should Wilson Center report as contribution revenue for 2017? (Ignore time value calculations.) b. In addition, a local social worker, earning $20 per hour working for the state government, contributed 600 hours of time to Wilson Center at no charge. Without these donated services, the organization would have hired an additional staff person. How should Wilson Center record the contributed service? a. Contribution revenue b. Contributed service
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Wilson Center is a private not-for-profit voluntary health and welfare entity. During 2017, it received unrestricted pledges of $600,000,
60 percent of which were payable in 2017, with the remainder payable in 2018 (for use in 2018). Officials estimate that 15 percent of all
pledges will be uncollectible.
a. How much should Wilson Center report as contribution revenue for 2017? (Ignore time value calculations.)
b. In addition, a local social worker, earning $20 per hour working for the state government, contributed 600 hours of time to Wilson
Center at no charge. Without these donated services, the organization would have hired an additional staff person. How should
Wilson Center record the contributed service?
a Contribution revenue
b. Contributed service
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