Question
Lina Center for Performing Arts is a not-for-profit organization. The center began operations on January 1, 2021 with $135,000 of temporarily restricted assets. The amounts
Lina Center for Performing Arts is a not-for-profit organization. The center began operations on January 1, 2021 with $135,000 of temporarily restricted assets. The amounts are restricted for the following: $75,000 is restricted for student outreach, $20,000 is restricted for performer education, and $45,000 is restricted for building improvements.
During the fiscal year ending December 31, 2021 the following transactions occur. Prepare the entries for all events including depreciation and reclassifications. Please identify journal entries with the appropriate designation of UR, TR, and PR. Use restricted funds to the extent possible.
1....The center received a donation for an original Monet painting which will be held on display in the Lina Center for Performing Arts. The estimated value of the artwork is $1.5 million. Lina follows a policy of capitalization.
2....A term endowment of $150,000 expires.
3...Collected $5,000 in fees for upcoming performances. Half of these performances will occur in the subsequent fiscal year.
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