Reference no: EM132441581

Question - Reporting Promises

At the beginning of 2020, the Museum of History receives a documented promise to contribute $20,000 at the end of each year for the next four years. The appropriate discount rate is 3 percent, and the promise is considered fully collectible. At the end of 2020, the museum receives the first payment.

Required - Prepare journal entries to record the promise and the first year's contribution. If the museum's net assets are affected, indicate the appropriate category of net assets.