Transactions engaged in by not-for-profit organizations. The American Association for Freedom, a political think tank, was recently established. During its first year of operations it engaged in the following transactions and was affected by the following events (in summary form):

It received a $10,000,000 endowment contribution from a donor, all in stocks and bonds. It received $3,000,000 in additional contributions, all restricted for its educational programs and $2,300,000 in contributions without donor restrictions. It acquired $800,000 in furniture, fixtures, and equipment, all of which have an expected useful life of 10 years. It recognized depreciation on the furniture, fixtures, and equipment, purchased earlier in the year. It spent $2,400,000 on educational programs. It earned $300,000 in interest and dividends on its endowment investments. By year-end the value of its investments had appreciated by $600,000. It incurred $1,300,000 in administrative expenses. Near year-end it received a pledge of $4,500,000, to be fulfilled in three annual installments of $1,500,000 beginning in one year. The Association determined that a discount rate of 6 percent was appropriate. Prepare a year-end statement of financial position and statement of activities. Attached are my journal entries to help:

1 Investment $10,000,000 Endowment Funds $10,000,000 2 Cash $5,300,000 Education Fund $3,000,000 General Reserves $2,300,000 3 Furniture, Fixture, Equipment $800,000 Cash $800,000 4 Depreciation $80,000 Furniture, Fixture, Equipment $80,000 5 Education Expenses $2,400,000 Cash $2,400,000 Education Fund $2,400,000 Education Expenses $2,400,000 6 Cash $300,000 Interest Revenue/Income $300,000 7 No entry unless we "sell" causing a gain or loss. 8 Admin Expenses $1,300,000 Cash $1,300,000 9 This is not entered but noted in the statements, then will be recognized in the year of.