Preston Library, a nonprofit organization, presented the following statement of financial position and statement of activities for its fiscal year ended February 28, 2011.

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The following transactions occurred during the fiscal year ended February 28, 2012.
1. Fees were billed as follows:
Service fees........... $30,000
Book rentals........... 43,000
Book fines........... 78,000
2. $40,000 of the Grant Receivable was received. Another grant in the amount of $20,000 was promised.
3. Contributions in the amounts summarized below were received:
Unrestricted........... $215,000
Restricted............ 108,000
4. Investment income totaled $75,000 for the year.
5. Vouchers for the year were approved as follows:
Circulating library........... $189,000
Research library........... 74,000
Exhibits............. 15,000
Community services......... 12,000
General and administrative..... 166,000
Fund raising ........... 103,000
Total............... $559,000
6. During the year, $500,000 worth of vouchers were paid.
Adjustment Data
7. Accounts Payable and Accrued Expenses at February 28, 2012, should be $217,000. The difference should be allocated to the following expenses:
Research library........... $5,000
General and administrative...... 3,000
8. Additions to the research library in the amount of $68,000 that were approved in (5) above were made in accordance with the terms of a contribution that had been received earlier and that was restricted for that purpose.
9. The current market value of the investments is $1,035,000 (no investment transactions occurred).
10. Depreciation amounted to $9,000 for the year. It should be allocated as follows:
Circulating library......... $3,500
Research library.......... 2,900
General and administrative.... 2,600
11. Prepaid Expenses should be $60,000. The difference should be allocated to:
Exhibits............ $3,700
General and administrative..... 1,300

Required:
A. Prepare journal entries to record the transactions.
B. Prepare the statement of financial position and the statement of activities for the year ended February 28,2012.

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Preston Library Statement of Financial Position February 28, 2011 Temporarily Restricted Assets Unrestricted Current Assets 80,000 Cash Grants Receivable Prepaid Expenses 285,000 80,000 65,000 430,000 1,020,000 Total Investments (at market) Land, Building, and Equipment (less accumulated depreciation of $50,000) 530,000 $1,980,000 Total Assets $80,000 Liahlities and Pund Balances Current Liabilities 150,000 150,000 200,000 1,630,000 $1,980,000 Accounts Payable and Accrued Expenses Total Long-Term Debt Fund Balances 80,000 $30,000 Total Liabilities and Fund Balances Preston Library Statement of Activities for Year Ended February 28, 2011 Temporariy Restricted Support and Revenue Unrestricted Support Grants Gifts $70,000 300,000 370,000 80,000 80,000 Total Revenue Service Fees Book Rentals and Fines Investment Income 22,000 107,000 71,000 200,000 570,000 Total Total Support and Revenue $80,000 Expenses Program Services Circulating library Research library Exhibits Community services 212,000 86,000 20,000 10,000 328,000 Total Supporting Services 175,000 111,000 286,000 614,000 (44,000) 1,674,000 1,630,000 General and administrative Fund raising Total Total Expenses Increase decrease in net assets Fund Balances-beginning of year Fund Balances end of year 80,000 80,000