The American Association for Autism, a special needs think tank, was recently established. During its first year ofoperations it engaged in the following transactions and wasaffected by the following events (in summary form):
1. It received a $20,000,000 endowment contribution, allin stocks and bonds.
2. It received $6,000,000 in additional contributions, allrestricted for its educational programs and $4,600,000in unrestricted contributions.
3. It acquired $1,600,000 in furniture, ?xtures, and equipment, all of which have an expected useful life of 10years.
4. It recognized depreciation on the furniture, ?xtures,and equipment, purchased earlier in the year.
5. It spent $4,800,000 on educational programs.
6. It earned $600,000 in interest and dividends on itsendowment investments.
7. By year-end the value of its investments had appreciated by $1,200,000.
8. It incurred $2,600,000 in administrative expenses.
9. Near year-end it received a pledge of $9,000,000, tobe ful?lled in three annual installments of $3,000,000beginning in one year. The
Association determinedthat a discount rate of 6 percent was appropriate.
a. Prepare journal entries to record these events and transactions. Be sure to indicate the fund-type in which the entry would be made.
b. Prepare a year-end statement of financial position and statement of activities.