St. Paul's is a private not-for-profit hospital. At the end of December 2016, a donor pledged to make five payments of $50,000, beginning on January 1, 2017. The contributions are restricted to pay for operations in those years. The present value of these payments is $223,255, discounted at 6%. The contribution was not restricted as to purpose. Record all entries required for 2016 and 2017.
What will be an ideal response?
| Debit | Credit |
| Pledges Receivable | 223,255 |
| Contribution Revenue-Temporarily Restricted | 223,255 |
1-01-2017
| Cash | 50,000 |
| Pledges Receivable | 50,000 |
Net Assets-Satisfaction of Time Restrictions
| Reclassification to Unrestricted Net Assets- | 50,000 |
| ? | 50,000 |
| Pledges Receivable | 10,395 |
| Contribution Revenue-Temporarily Restricted | 10,395 |
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