St. John's is a private not-for-profit hospital. At the end of December 2008, a donor pledged to make five payments of $50,000 each, on January 1, 2009, 2010, 2011, 2012 and 2013 to pay for operations in those years. The present value of these payments is $210,618, discounted at 6%. The contribution was not restricted as to purpose. Record all entries required for 2008 and 2009.

Question

Quizplus · Accepted Answer

The Answer of St. John's is a private not-for-profit hospital. At the end of December 2008, a donor pledged to make five payments of $50,000 each, on January 1, 2009, 2010, 2011, 2012 and 2013 to pay for operations in those years. The present value of these payments is $210,618, discounted at 6%. The contribution was not restricted as to purpose. Record all entries required for 2008 and 2009.

St John's Is a Private Not-For-Profit Hospital