1420 Statement of Activities (LO14 3) The Atkins Museum recently hired a new controller His experience with managerial accounting and strong communication skills were extremely attractive The new controller sent each member of the Board of Trustees Finance Committee a set of the financial statements one week before the monthly meeting for their review The set included the following statement of activities Page 607 THE ATKINS MUSEUM Statement of Activities For the Year Ended June 30, 2020 (in hundreds of dollars) Public Exhibits Abstract Exhibit Mgt General Total Revenues Contributions $ 61,400 $50,000 $ 0 $111,400 Charges for services 478,800 0 0 478,800 Interest income 0 0 2,500 2,500 Total revenues 540,200 50,000 2,500 592,700 Expenses Salaries and wages 381,900 24,700 44,200 450,800 Occupancy costs 38,100 12,000 14,900 65,000 Supplies 7,100 2,300 8,300 17,700 Equipment 5,000 0 6,500 11,500 Travel and development 2,800 0 6,900 9,700 Depreciation 12,000 1,500 6,300 19,800 Interest 0 0 3,700 3,700 Total variable expenses 446,900 40,500 90,800 578,200 Allocated management and general expenses 85,300 5,500 (90,800) 0 Total costs 532,200 46,000 0 578,200 Excess of revenues over expenses $ 8,000 $ 4,000 $ 2,500 $ 14,500 Other information The management and general expenses are first allocated to the programs to which they directly relate for example, the executive directors salary is allocated to the Public Exhibit Program according to the percentage of time spent working on the program Remaining unallocated management and general expenses are allocated to the programs as indirect costs based on the relative amount of salaries and wages to total salaries and wages for the programs Required As a member of The Atkins Museums Board of Directors Finance Committee, review this statement and answer the following questions Is the statement in proper form according to FASB standards What questions do you have for the controller The Atkins Museum would like to open an Impressionists exhibit If its operating expenses are expected to be similar to those of the Abstract Exhibit, how much should the organization solicit in contributions or grants to cover the full cost of the program If you were a potential contributor to the Atkins Museum, do you think you have enough information from this statement on which to base your decision to donate

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1420.

Statement of Activities. (LO14-3) The Atkins Museum recently hired a new controller. His experience with managerial accounting and strong communication skills were extremely attractive. The new controller sent each member of the Board of Trustees Finance Committee a set of the financial statements one week before the monthly meeting for their review. The set included the following statement of activities.

Page 607


THE ATKINS MUSEUM Statement of Activities For the Year Ended June 30, 2020 (in hundreds of dollars)
	Public Exhibits	Abstract Exhibit	Mgt. & General	Total
Revenues:
Contributions	$ 61,400	$50,000	$ 0	$111,400
Charges for services	478,800	0	0	478,800
Interest income	0	0	2,500	2,500
Total revenues	540,200	50,000	2,500	592,700
Expenses:
Salaries and wages	381,900	24,700	44,200	450,800
Occupancy costs	38,100	12,000	14,900	65,000
Supplies	7,100	2,300	8,300	17,700
Equipment	5,000	0	6,500	11,500
Travel and development	2,800	0	6,900	9,700
Depreciation	12,000	1,500	6,300	19,800
Interest	0	0	3,700	3,700
Total variable expenses	446,900	40,500	90,800	578,200
Allocated management and general expenses	85,300	5,500	(90,800)	0
Total costs	532,200	46,000	0	578,200
Excess of revenues over expenses	$ 8,000	$ 4,000	$ 2,500	$ 14,500

Other information: The management and general expenses are first allocated to the programs to which they directly relate; for example, the executive directors salary is allocated to the Public Exhibit Program according to the percentage of time spent working on the program. Remaining unallocated management and general expenses are allocated to the programs as indirect costs based on the relative amount of salaries and wages to total salaries and wages for the programs.

Required

As a member of The Atkins Museums Board of Directors Finance Committee, review this statement and answer the following questions:
1. Is the statement in proper form according to FASB standards?
2. What questions do you have for the controller?
3. The Atkins Museum would like to open an Impressionists exhibit. If its operating expenses are expected to be similar to those of the Abstract Exhibit, how much should the organization solicit in contributions or grants to cover the full cost of the program?
4. If you were a potential contributor to the Atkins Museum, do you think you have enough information from this statement on which to base your decision to donate?