Wilson Center is a private not-for-profit voluntary health and welfare entity. D

Question

Wilson Center is a private not-for-profit voluntary health and welfare entity. During 2017, it received unrestricted pledges of $615,000, 70 percent of which were payable in 2017, with the remainder payable in 2018 (for use in 2018). Officials estimate that 18 percent of all pledges will be uncollectible.

Wilson Center Is a prlvate not-for-profit voluntary health and welfare entity. During 2017, It recelved unrestricted pledges of $615,000, 70 percent of which were payable In 2017, with the remainder payable In 2018 for use In 2018). Officials estilmate that 18 percent of all pledges will be uncollectible. a. How much should Wilson Center report as contribution revenue for 2017? (Ignore time value calculatlons.) b. In addition, a local soclal worker, earning $35 per hour working for the state government, contributed 650 hours of time to Wilson Center at no charge. Without these donated services, the organlzation would have hired an additional staff person. How should Wilson Center record the contributed service? . Contribution revenue b. Contributed service

Explanation / Answer

Answer a. Pledges        615,000.00 Less: Anticipated Uncollectible - 18% X $615,000        110,700.00 Net Pledge Balance        504,300.00 Contribution revenue - 2017 - $504,300 X 70%        353,010.00 Answer b. Contributed Service - $35 X 650 Hrs          22,750.00

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