Mon Elisa, a NFPO, has recently changed its accounting system. The following transactions and events occurred during 2013. The transactions, as well as their resulting journal entries, are presented below.

1. Cash of $ 40,000 was received from donors, who stated that it could be used for any purpose desired by the museum.

2. A donor gave the museum $ 10,000, stipulating that the money be used only to acquire fine examples of Weller Dickensware pottery.

3. Elias Gotbucks sent Mon Elisa a letter, stating that he would donate $ 15,000 to the museum to purchase examples of Sara Dawns quilt work, provided the museum conducted a special cam-paign that raised at least $ 25,000 to buy additional examples.

4. The museum spent $ 4,000 to acquire a fine Weller Dickensware vase. Assume that Mon Elisa capitalizes its pottery collection.

5. Mon Elisa contacted wealthy patrons to raise funds to buy Sara Dawns quilt work. It obtained $ 30,000 in pledges, all likely to be collected. Mon Elisa then wrote to Elias Gotbucks, advising him it had raised $ 30,000.

6. Attorney Ted Floot donated his services to the museum. He spent 4 hours on museum legal matters and 3 hours as a salesperson in the museum shop. Mr. Floot bills $ 250 an hour when he works as an attorney.

7. During the year, Mon Elisa received several art works having a total fair value of $ 45,000. Mon Elisa does not capitalize its art collection, but it holds the art for public exhibition, protects and preserves the works, and uses the proceeds of any sales to acquire other works for its collection.

8. A wealthy patron donated The Portrait of Samantha , which had a fair value of $ 6,000, to the museum. The museum accepted the gift with the understanding that it would be sold at auction and the proceeds used for any purpose the museum wished.

9. Another wealthy patron entered into an irrevocable charitable remainder trust with Mon Elisa, whereby the patrons wife would receive annual distributions until her death. At that time, Mon Elisa would receive the remaining assets, to be used to augment Mon Elisas art collection. The patrons bank will administer the trust. Mon Elisas actuary estimated the fair value of the gift at $ 95,000.

Resulting Journal Entries

1. Cash 40,000

Unrestricted support - contributions 40,000

2. Cash 10,000

Temporarily restricted support - contributions 10,000

3. No entry. (Conditional promise to give)

4. Collection - pottery (assumes capitalization) 4,000

Cash 4,000

Temporarily restricted asset reclassifications out-

satisfaction of program restrictions 4,000

Unrestricted asset reclassifications in-

satisfaction of program restrictions 4,000

5. Contributions receivable 30,000

Temporarily restricted support - contributions 30,000

Contributions receivable - (E. Gotbucks) 15,000

Temporarily restricted support - contributions 15,000

6. Expenses - administration 1,000

Unrestricted support - donated services 1,000

7. No entry. (Policy is to not capitalize the art collection)

8. Donated art held for sale 6,000

Unrestricted support - contributions 6,000

9. Contributions receivable beneficial interest in

charitable remainder trust 95,000

Temporarily restricted support contributions 95,000

Required: Please prepare the financial statements based on these transactions.