The Joslyn Museum is a private, not-for-profit organization that exhibits “an ec

Question

The Joslyn Museum is a private, not-for-profit organization that exhibits “an eclectic collection of works beginning with Greek pottery and moving through Europe and into American Western art and finishing in the 20th century” [www.joslyn.org.]

The Museum has a fiscal year end of December 31st.

On January 1, 2017 the Statement of Financial Position had the following amounts:

Cash $8,000,000 (debit)

Unrestricted Net Assets $7,000,000 (credit)

Restricted by Donors Net Assets $1,000,000 (credit)

During the year 2017, the following events happened:

Cash that was received last year, and was Restricted by Donors, was spend on a new art piece in 2017. The cost was $600,000.

Cash, that was NOT restricted by donors of $1,000,000 was received in 2017.

Required:

Record the two transactions above in journal entry form.

Prepare a Statement of Activities for the year 2017.

Prepare a Statement of Changes in Net Assets for 2017.

Prepare a Statement of Financial Position (balance sheet) as of December 31, 2017.

Explanation / Answer

Journal Entry

Statment of Activities (SOA)

Statment of change in Net Assets

Statment of financial Position

1 Restricted by Donor 600000 Released from restriction 600000 2 Programme Expenses 600000 Cash 600000 3 Cash A/c 1000000 Unrestricted by donor 1000000

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.