MUSEUM was incorporated as a not-for-profit organization on January 1, 1985. During the fiscal year ended December 31, 2017, the following summary transactions occurred.

The Museum paid wages and salaries of $1,039,000. Department employees earned the following: programs $865,000, fundraising $50,000, and administration $130,000. The remaining amount was accrued at year-end.

The Museum paid operating expenses of $230,000 for programs, $10,000 for fundraising, and $33,000 for administration. In addition, the Museum paid $3,000 of outstanding accounts payable and $5,000 to obtain inventory. Administrative expenses of $7,000 that were recognized as prepaid expenses in the prior year were consumed.

Property, plant, and equipment was acquired with a note for $20,000.

Depreciation was recognized in the following departments: $175,000 for programs, $5,000 for fundraising, and $30,000 for administration.

Museum admission fees of $505,000 were collected.

A perpetual endowment earned and received interest and dividends of $280,000. The endowment also increased in value $100,000 as of year-end. The donor did not place any time or purpose restrictions of the endowment earnings and the Museum uses historical dollar value to measure the corpus.

A special event that is considered incidental generated $470,000 in gross revenues and had direct costs of $350,000 resulting in net cash of $120,000 received.

A fundraising campaign generated $338,000 in cash gifts and $180,000 in pledges. No purpose restrictions are present, however the pledges will not be collected until next year. $20,000 of the pledges are estimated to be uncollectible.

Pledges made in previous years of $145,000 (with time restrictions due to being a pledge) were collected.

A donor gave $90,000 and required the gift be used on community outreach programs.

The Museum used restricted gifts given in prior years on a program, spending $710,000.

Required

Make all necessary journal entries to record these transactions.

Prepare a statement of activities for the year ended December 31, 2017. Beginning balances of net assets are: Unrestricted $2,002,000; Temporarily Restricted $850,000; and Permanently Restricted $3,000,000.