Prepare journal entries to record these events

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Question - Assume Wadsworth Museum (which has a December 31st year-end) received the following contributions in 2020. Prepare journal entries to record these events and any year-end adjusting journal entries resulting from the events.

A) Unrestricted pledges of support were received in the amount of $525,000. All of these are due within the year and it is estimated that 4% will ultimately prove to be uncollectible.

B) 1,200 Memberships were sold to the public in the amount of $45 each. Membership provides the individual with a monthly magazine and other benefits. The estimated fair value of member benefits is $20. The member year runs from July 1 to June 30.

C) A local carpenter donated supplies and labor with values of $45,000 and $15,000 (respectively) to construct a new exhibition area. Fixed assets are classified as unrestricted net assets.

D) On July 1, 2020 a local businessman made a pledge payable in a future period. The pledge is restricted in purpose and has a present value of $325,000 (effective interest rate of 5%).

Reference no: EM133079358

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