Question
The post closing trial balance for the Halifax Fishing Museum, a private sector not for profit entity, is provided below. Trial Balance as of December
The post closing trial balance for the Halifax Fishing Museum, a private sector not for profit entity, is provided below. Trial Balance as of December 31, 2011.
DR. | Cr. | |
Cash | 25,000 | |
Building | 210,000 | |
Investment - Endowment | 120,000 | |
Net Assets - UR | 235,000 | |
Net Assets - TR | 0 | |
Net Assets - PR | 120,000 | |
Total | 355,000 | 355,000 |
The Halifax Fishing Museum has two programs: the fishing Museum and educational programs. During the year, 2012 the following transactions took place.
1. Cash contributions to the Museum included: Unrestricted, $350,000, Restricted for educational programs, $15,000, Restricted for endowment purposes, $50,000.
2. $77,000 in cash was received in advance. A civic group planned to use part of the facilities for a meeting and program at the beginning of 2013. The revenue would result in unrestricted net assets.
3. Cash of $10,500 in unrestricted cash was received for admissions to the Museum.
4. Donors pledged $30,000 during 2012. The contributions were unrestricted as to purpose, however, they were not to be used until 2013. In addition, the Museum expected that 10% of the pledges would be uncollectible.
5. Expenses paid in cash for the year were Museum operations $244,000, Educational Programs, $26,000 and administrative, $62,000. The $15,000 received in transaction #1 was used to pay part of the educational program expenses.
6. Endowment investments in the amount of $50,000 were purchased.
7. At the end of the year the endowment investments had not changed in fair value, however, $600 in interest revenue was accrued. Interest on the endowment is unrestricted.
8. Depreciation expense was $45,000. $35,000 was charged to the Museum, $5,000 was charged to education, and $5,000 was charged to administration.
Required: 1. Prepare the journal entries for the above transactions. Hint: you can use one account
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