During the years ending June 30,2016,and June 30,2017,Jefferson University conducted a cancer research project financed by a $3,000,000 gift from an alumnus.This entire amount was pledged by the donor on July 10,2015,although he paid only $800,000 at that date.The gift was restricted to the financing of this particular research project.During the two-year research period,Jefferson related gift receipts and research expenditures were as follows: How much gift revenue should Jefferson University report in the temporarily restricted column of its statement of activities for the year ended June 30,2017?

Question

During the years ending June 30,2016,and June 30,2017,Jefferson University conducted a cancer research project financed by a $3,000,000 gift from an alumnus.This entire amount was pledged by the donor on July 10,2015,although he paid only $800,000 at that date.The gift was restricted to the financing of this particular research project.During the two-year research period,Jefferson related gift receipts and research expenditures were as follows:  How much gift revenue should Jefferson University report in the temporarily restricted column of its statement of activities for the year ended June 30,2017?

Quizplus · Accepted Answer

The gift revenue that should be reported in the temporarily restricted column of the statement of activities for the year ended June 30, 2017 is $1,600,000. This is because the donor only paid $800,000 in the previous year, and there is no mention of any additional payments in the current year. Therefore, only the $800,000 received in the previous year and the $800,000 received in the current year should be recorded as gift revenue. The remaining $1,200,000 is still outstanding and should be reported as a pledge receivable in the balance sheet. Therefore, the correct answer is B.

During the Years Ending June 30,2016,and June 30,2017,Jefferson University Conducted