Stratford House is a non-profit organization that operates an emergency shelter for women and their children in Vancouver. Stratford House earns fee income by providing presentations and information sessions on domestic abuse at workplaces, in schools and for other groups. In addition, the organization also receives government grants and generates some fundraising income each year. Stratford House was incorporated with help from a wealthy private citizen and is governed by a volunteer board. The organization started operations on June 1 2015 . Stratford House has hired a fundraiser to assist in planning and executing fundraising activities for the organization. During the fall and winter, the organization undertakes a number of fundraising activities. Part 1: The following information is available about the fundraising activities. – Fundraising activities in October and November raised $7,500 and $5,000 respectively. Donations made up 21% of this revenue, with the balance being pledges. The fundraiser expects that the fundraising activity until the third quarter will yield the following amounts each month: December $11,500 January $9,500 February $11,400 March $10,260 – The split between cash donations and pledges experienced in October and November are expected to continue until the end of March. – The organization has found that 72% of a month’s pledges are received in the month following the pledge (1 to 30 days), with the remainder received the following month (31 to 60 days). – The fundraiser charges a fee for the fundraising activities of 45% of all income (donations and pledges) declared in a month. Stratford House records the fundraising cost in the month it is incurred and pays it in the following month. Part 1 Instructions: Prepare a forecast, for October to March, of net fundraising revenue for the organization. Use Excel for all of this work, to assist with accuracy. Prepare this report to an appropriate business standard. Classification: Protected A Part 2: The following information is available about past due pledges: – The following pledges were made at the monthly fundraisers: Date Donar Pledge January 5 Smith $250 January 5 Acco $875 January 5 Swinston $465 February 14 Kieso $390 February 14 Sui $745 February 14 Elbarrad $975 February 14 Kayak $1,050 March 11 Young $575 March 11 Wiecek $287 March 11 Lee $355 – The organization has historical information that the following pledges outstanding will default: 0 to 30 days 1% 31 to 60 days 4% Over 61 days 7% – Today’s date is March 31 Part 2 Instructions: Prepare a pledges report with an aging analysis by month for January to March. Calculate the total estimated uncollectible pledges on March 31 and prepare the appropriate journal entry to record the uncollectible pledges. Use Excel for all of this work, to assist with accuracy. Prepare this report to an appropriate business standard. IA3 Template Forecast March to April ForecastOctoberNovemberDecJanuaryFebruaryMarch Donations$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0 Pledges$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0 Total$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0 Receipts Donations$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0 Pledges:XX%na$ – 0$ – 0$ – 0$ – 0$ – 0 Pledges:XX%nana$ – 0$ – 0$ – 0$ – 0 Total$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0 Costs Per Month$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0 Lagged Payment$ – 0$ – 0$ – 0$ – 0$ – 0$ – 0 Net Forecast Revenue$ – 0$ – 0$ – 0$ – 0 Aging of Accounts Receivable and Allowance for Doubtful Accounts Report Donor NamePledges ($)Pledge Date0 to 3031 to 6061 to 90 Smith$ – 00 Acco$ – 00 Swinston$ – 00 Kieso$ – 00 Sui$ – 00 Elbarrad$ – 00 Kayak$ – 00 Young$ – 00 Wiecek$ – 00 Lee$ – 00 Total$ – 0$ – 0$ – 0$ – 0 % Uncollectible1%4%7% AFDA$ – 0$ – 0$ – 0$ – 0 DrUncollectible Pledges Expense CrAllowance for Uncollectible Pledges &1#&”Calibri”&11&K000000Classification: Protected A