Doctor Strange completed its first fundraising campaign in December 2019. It was successful and resulted in...

 

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Doctor Strange completed its first fundraising campaign in December 2019. It was successful and resulted in pledges totaling $100,000, for use at management's discretion, to be collected in March 2020. Joseph is hopeful that 95% of the pledges will be collected. i) ii) Explain whether the pledges can be set up as an asset on the statement of financial position as at December 31, 2019. (3 marks) Disregard your answer to (i) and assume that the pledges can be recorded for financial statement purposes. Prepare the journal entry that would be recorded. (3 marks) Doctor Strange completed its first fundraising campaign in December 2019. It was successful and resulted in pledges totaling $100,000, for use at management's discretion, to be collected in March 2020. Joseph is hopeful that 95% of the pledges will be collected. i) ii) Explain whether the pledges can be set up as an asset on the statement of financial position as at December 31, 2019. (3 marks) Disregard your answer to (i) and assume that the pledges can be recorded for financial statement purposes. Prepare the journal entry that would be recorded. (3 marks)

Answer rating: 100% (QA)

i The pledges totaling 100000 cannot be set up as an asset on the statemen... View the full answer