Open Air Conservatory, a Not-For-Profit Entity, Held a Fund-Raising Drive

question 16

Multiple Choice

Open Air Conservatory, a not-for-profit entity, held a fund-raising drive to raise money to buy land to provide a habitat for the endangered Sleepy Eagle. A donor pledged $1 million to the project provided that Open Air Conservatory was able to raise an additional $1.5 million from other sources. What entry should Open Air Conservatory make at the time of the $1 million pledge?

• A) Debit Pledge receivable $1 million; Credit Unrestricted revenue $1 million.
• B) Debit Pledges receivable $1 million; Credit Restricted revenue $1 million.
• C) Debit Pledges receivable $1 million; Credit Grant revenue $1 million.
• D) No entry is made at the time of the pledge.