In 2021, the Toronto Museum had the following transactions:- i. The Museum was awarded a grant of

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In 2021, the Toronto Museum had the following transactions:-

i. The Museum was awarded a grant of $ 3 million from the Provincial Government. Of that amount, $1.55million was provided for office space which included an estimated $700,000 to acquire a head office in Toronto, and the remaining $850,000 to cover additional rentals for the next 2 years. The remaining $1.45 million was to cover operating costs. $800,000 was received immediately and the remaining $650,000 will be received in January 2022.

ii. The Museum bought a building in downtown Toronto for $700,000. The property’s fair value was $900,000 but the owner sold it for a lower price since the Museum was used by family members. The expected life of the building is 20 years.

iii. The Museum paid salaries of $200,000 for office personnel during the year. $95,000 for a fundraiser hired to raise funds for endowment and yearly operations and $150,000 for an executive director. They also paid $25,000 to train volunteers.

iv. The annual fundraising campaign, which began in October and ended in December, yielded pledges of $400,000, of which $300,000 had been collected by the year-end.

v. The fundraiser secured a major endowment of $550,000 on October 1^st,2021 from an individual whose relative had spent several months at the Museum researching a rare species of animal. The interest on the endowment can be used at the Museum’s discretion. The funds were invested in Government bonds. The bonds pay interest of 5% annually.

vi. Deferred revenue from last year’s fundraising activities is in the ledgers this year and was made up of the following:-

Contributions…………………………………………………….2,000,000

Less: Campaign expenses…………………………………..…(1,400,000)

Deferred income………………………………………………. ... 600,000

vii. A campaign to raise funds for next year’s operations was held in December 2022. Cash of $1,000,000 was collected and pledges of $500,000 received. It is expected that 5% of those pledges will be uncollectible. Total fundraising costs were $900,000 of which $100,000 is still remaining to be paid.

Required:-Prepare the journal entries for the above transactions using the Deferral Method of Accounting.