The Association of Women in Government established an Educational Foundation to raise money to support scholarship and other education initiatives. The Educational Foundation is a private not-for-profit. Members of the Association of Women in Government periodically make donations to the Educational Foundation. With the exception of the gift described below, these are unrestricted. In December 2016, a donor established a permanent endowment with an initial payment of $100,000 and a pledge to provide Sl 0,000 per year for 3 years, beginning in December 2017. At the time, the pledge was recorded at the present value ($27 ,232), discounted at 5 percent. Earnings of the endowment (interest and investment gains) are derived from investment in AAA-rated corporate bonds and are restricted for the payment of scholarships. At the end of 2016, the organization had the following account balances: page 316 Cash Interest receivable Investments in bonds Pledges receivable Supplies inventory Scholarships payable Permanently restricted net assets Net assetstemporarily restricted: for scholarships Unrestricted net assets Total Debits s 22,900 700 100,000 27,232 400 S151,232 Credits s 5,000 127,232 2,600 16,400 S151,232