Art Museum Statements of Financial Assets

Problem 6-12 Journal Entries
Start with the Art Museum Statements of Financial Assets, Liabilities and Net Assets balances at fiscal year-end June 30, 20X1, shown in the Putting It All Together example in Chapter 6, pages 217-222, of “ Today’s Essenetials of Governmental and Not-For-Profit Accounting & Reporting”, 1e, by Susan W. Martin and Elle West. 
a. Record the following transaction for fiscal year July 1, 20X1, to June 30, 20X2, in journal entries.
1. Admission fees of $850,000 were received.
2. Salaries and wages of $500,000 and $100,000 in fringe benefits were paid.
3. The capital lease payable of $4,000 and mortgage payable of $22,000 payments were made.
4. Utility charges of $28,000 were paid.
5. The Gift Shop ordered and received inventory of $45,000 and had sales of $65,000. Inventory at fiscal year-end was $18,000.
6. The phonathon yielded pledges of $300,000: 50% were paid before fiscal year end.
7. The donor made a donation of $500,000 to be permanently invested with earnings to be used to support general operating activity ($5000 in interest was received during this fiscal year).
8. Accounts payable were paid in full before fiscal year-end.
9. The annual spring reception generated $70,000 in revenue and cost $15,000.
10. Depreciation expense of $50,000 on the museum and $5000 on furniture & fixtures was recorded.
11. Investment income of $108,000 temporarily restricted and $6000 unrestricted was received (in addition to the $5000 mentioned above in item 7).
12. Closing entries were recorded.

b. Prepare the basic financial statements for the Art Museum at fiscal year-end June 30, 20X2.