The Fine Art Museum, a not-for-profit entity, allocated expenses 80% to programs and 20% to general and
Question:
The Fine Art Museum, a not-for-profit entity, allocated expenses 80% to programs and 20% to general and administrative.
a) During the current year the Museum received admissions fees in cash $500,000 from visitors.
b) Citizens of the local community are encouraged to participate in a program called “Friends of the Museum.” For a yearly contribution of $25 per family, a family is entitled to free admission to the Museum during the calendar year. At year-end, there were 10,000 members in the “Friends of the Museum.”
c) During the current year the Museum incurred salary expense of $250,000 of which $60,000 remains unpaid at year-end.
d) During the year the Museum incurred operating expenses of $400,000 of which $30,000 remains unpaid at year-end. Of the $400,000, $50,000 was used to buy supplies of which $20,000 remains on hand at year-end.
e) During the year the Museum received pledges of $200,000 for the acquisition of new art items, of which the Museum had collected $150,000 by year-end and expected to ultimately collect another $20,000.
f) During the year a citizen died and willed his wonderful collection of native art to the Museum to help new art items acquisition. The collection was later sold for $600,000.
Required:
Prepare the necessary journal entries to record these transactions.
