3. Assume Towne Center Art Museum (which has a December 31st year end) received the following contributions in 2017.

a. Unrestricted pledges of support were received in the amount of $280,000. All of these are due within the year and it is estimated that 6% will ultimately prove to be uncollectible. b. 600 Memberships were sold to the public in the amount of $40 each. Membership provides the individual with a monthly magazine and other benefits. The estimated fair value of member benefits is $15. The member year runs from July 1 to June 30. c. A local carpenter donated supplies and labor with values of $25,000 and $20,000 (respectively) to construct a new exhibition area. Fixed assets are classified as unrestricted net assets. d. On April 1, 2017 a local businessman made a pledge payable in a future period. The pledge is restricted in purpose and has a present value of $105,000 (effective interest rate of 6%).

Required: Prepare journal entries to record these events and any year-end adjusting journal entries resulting from the events.

ACC 4310 Governmental and Non-profit Accounting Final Examination Problem #3 Towne Center Art Museum General Journal 31-Dec-17 Account DR CR a b Year-end adjustment d Year-end adjustment