The American Association for Freedom, a political think tank, was recently established. During its first year of operations it engaged in the following transactions and was affected by the following transactions and was affected by the following events (in summary form): 1. It recieved a $10,000,000 endowment contribution from a donor, all in stocks and in bonds. 2. It received $3,000,000 in additional contributions, all restricted for its educational programs and $2,300,000 in contributions without donor restrictions. 3. It acquired $800,000 in furniture, fixtures, and equipment, all of which have an expected useful life of 10 years. 4. It recognized depreciation on the furniture, fixtures and equipment, purchased earlier in the year. 5. It spend $2,400,000 on educational programs. 6. It earned $300,000 in interest and dividends on its endowmnet investments. 7. By year-end the value of its investments had appreciated by $600,000 8. It incurred $1,300,000 in administrative expenses. 9. Near year-end it received a pledge of $4,500,000 to be fulfilled in three annual installments of $1,500,000 beginning in one year. The Association determined that a discount rate of 6 percent was appropriate, Prepare journal entries to record these events and transactions. Be sure to indicate the fund-type in which the entry would be made. Also please include the category of Net Assets, i.e without donor restrictions or with donor restrictions for each journal entry.
The American Association for Freedom, a political think tank, was recently established. During its first year of operations it engaged in the following transactions and was affected by the following transactions and was affected by the following events (in summary form):
1. It recieved a $10,000,000 endowment contribution from a donor, all in stocks and in bonds.
2. It received $3,000,000 in additional contributions, all restricted for its educational programs and $2,300,000 in contributions without donor restrictions.
3. It acquired $800,000 in furniture, fixtures, and equipment, all of which have an expected useful life of 10 years.
4. It recognized
5. It spend $2,400,000 on educational programs.
6. It earned $300,000 in interest and dividends on its endowmnet investments.
7. By year-end the value of its investments had appreciated by $600,000
8. It incurred $1,300,000 in administrative expenses.
9. Near year-end it received a pledge of $4,500,000 to be fulfilled in three annual installments of $1,500,000 beginning in one year. The Association determined that a discount rate of 6 percent was appropriate,
Prepare journal entries to record these events and transactions. Be sure to indicate the fund-type in which the entry would be made. Also please include the category of Net Assets, i.e without donor restrictions or with donor restrictions for each
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