Adapted from problem 10-11:

The Blair Museum Association is a private not-for-profit museum that operates three programs: museum operations, school program, and traveling displays. The museum recorded the following activity for the year ended Dec 31, 2017:

• Had contributions, including pledges, of unrestricted contributions $970,000; restricted by donors for traveling displays $250,000; restricted by the donor for an endowment $1,400,000; and restricted by donors for security equipment $450,000.
• Additional unrestricted cash receipts included admission charges of $365,000; interest income of $210,000; and tuition for the museum school program of $70,000.
• Donors made pledges in 2017 for funds specifically to be used in 2018 of $400,000
• A multi-year pledge was made by a private foundation for 50,000 per year for the next 5 years. The present value of those future payments is 211,000 using a 6% discount rate.
• The museum collected pledges receivable from the previous year of $135,000. Although not restricted in purpose, the revenue (last year) had been classified as time restricted.
• The museum had cash expenses related to museum operations of 1,300,000
• school program of 85,000 & 7,000 for school programs
• traveling displays of 230,000
• management & general of 350,000 & 12,000 for management & general
• fund-raising of 250,000 & 4,000 for fund-raising
• membership development of 145,000 & 4,000 for membership development.
• Depreciation of museum fixed assets amounted to 40,000 for museum operations
• The museum purchased security equipment for 575,000. The museum records all equipment in the unrestricted class of net assets
• The beginning net assets without donor restrictions was $412,000 and beginning net assets with donor restrictions was $3,650,000.

Prepare a Statement of Activities.

Restricted Contributions These include purpose and time restrictions (pledges have inherent time restrictions

Net Asset Reclassifications always assume you use restricted resources first when available, even for transactions that would normally only affect the balance sheet.

Depreciation allocation depreciation should be allocated to functional expenses.