Answered Essay: This is for the American Red Cross (not for profit). Compare the organiz

This is for the American Red Cross (not for profit). Compare the organization’s reporting of pledges and contributions to its reporting of exchange transactions. How should they be recorded and subsequently reported in the financial statements.

Expert Answer


Contributions e.g. If John (who is not an owner of Red Cross) transfers $1000 to Red Cross without taking anything in return. Or Red Cross owes John $500, but John cancels that due amount and Red Cross need not give it to John anymore, then it is a contribution from John to Red Cross.

This amount $1000/$500 to be recognized as revenue.

Non Cash Contribution e.g. John lets Red Cross use his office space for public work for one month.

The fair value of the office space rent to be recognized as revenue.

Restricted Contribution e.g. Mike transfers $2000 to be used on education purpose in Africa

Temporarily restricted Contribution e.g. Mike transfers $1500 to be used only after November 2018

These temporarily restricted contributions can be recorded in a separate line and the net assets released (suppose 500$ used after November 2018) can be recorded in the unrestricted Contribution line and substracted from restricted contribution.

Permanently restricted Contribution: e.g. Sara has given land area to Red cross to perform their day to day activities on that land. Red cross can hold promotional activities to earn revenue on that land.

The value of the land can be put on a separate line and can be added in the net assets.

Conditional Promise to give: e.g. Joe promises to give $10000 to Red Cross if they setup their base in Mexico. This promise is documented.

This $10000 is recognized as revenue once the base is setup in Mexico (i.e. once the condition is met)

Unconditional promise to receive (Pledge): e.g. Bill promises to give $50000 to Red Cross.

This will be recognized as revenue once it is received

Once all the above pledges and contributions are recorded, they are added reported in the financial statement in the form of Total Operating Revenue and Gains

Buy Essay
Calculate your paper price
Pages (550 words)
Approximate price: -

Help Me Write My Essay - Reasons:

Best Online Essay Writing Service

We strive to give our customers the best online essay writing experience. We Make sure essays are submitted on time and all the instructions are followed.

Our Writers are Experienced and Professional

Our essay writing service is founded on professional writers who are on stand by to help you any time.

Free Revision Fo all Essays

Sometimes you may require our writers to add on a point to make your essay as customised as possible, we will give you unlimited times to do this. And we will do it for free.

Timely Essay(s)

We understand the frustrations that comes with late essays and our writers are extra careful to not violate this term. Our support team is always engauging our writers to help you have your essay ahead of time.

Customised Essays &100% Confidential

Our Online writing Service has zero torelance for plagiarised papers. We have plagiarism checking tool that generate plagiarism reports just to make sure you are satisfied.

24/7 Customer Support

Our agents are ready to help you around the clock. Please feel free to reach out and enquire about anything.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.


Let us write that nagging essay.


Submit Your Essay/Homework Instructions

By clicking on the "PLACE ORDER" button, tell us your requires. Be precise for an accurate customised essay. You may also upload any reading materials where applicable.


Pick A & Writer

Our ordering form will provide you with a list of writers and their feedbacks. At step 2, its time select a writer. Our online agents are on stand by to help you just in case.


Editing (OUR PART)

At this stage, our editor will go through your essay and make sure your writer did meet all the instructions.


Receive your Paper

After Editing, your paper will be sent to you via email.

× How can I help you?