$44.$ The Watson Foundation, a private not$-$for$-$profit entity, starts $2024$ with cash of $$100,000$; contribu tions receivable $($net$)$ of $$200,000$; investments of $$300,000$; and land, buildings, and equipment $($net$)$ of $$200,000.$ Net assets without donor restrictions were reported as $$400,000,$ the same figure as the net assets with donor restrictions. Of the restricted net assets, $$300,000$ was purpose restricted, whereas the other $$100,000$ had to be held permanently, although the subsequently earned income is without restriction. Fifty percent of the purpose$-$restricted net assets had to be used to help pay for a new building. The remainder was restricted to the pavment of officer salaries. Donors made no stipulations about the eventual reporting of buildings and other long$-$lived assets when acquired. Watson has one program service $($health care$)$ and two supporting services $($fundraising and administrative$).$ During the current year, Watson Foundation has the following transactions: $(1)$ Computes interest of $$20,000$ on the unrestricted contribution receivable. $(2)$ Receives cash of $$100,000$ from the contributions receivable and wrote off another $$4,000$ as uncollectible. $(3)$ Receives unrestricted cash donations of $$180,000.(4)$ Receives $$23,000$ in cash that must be spent for a particular type of office machine within the next year or the money must be returned. $(5)$ Pays salaries of $$90,000.$ Of that amount, $$15,000$ came from restricted funds. The payment was made to individuals doing health care work. $(6)$ Spends the $$23,000$ in $(4)$ for the appropriate office machine. $(7)$ Receives a cash gift of $$12,000$ that Watson must convey to another specified charity. How ever, Watson has the right to give this money to a different organization if officials so choose.$(8)$ Buys a building for $$500,000$ by signing a long$-$term note for $$450,000$ and using restricted funds for the remainder. $(9)$ Collects annual membership dues of $$30,000.$ Individuals receive substantial benefits from their memberships. By the end of the year, two$-$thirds of the time for the average membership has passed. $(10)$ Receives unrestricted income of $$40,000$ generated by net assets that must be held permanently. $(11)$ The board of directors of the Watson Foundation votes to set aside $$9\mathrm{.}000$ of its investments for emergency purposes. $(12)$ Pays rent of $$12,000$ for the past month, advertising of $$15,000,$ and utilities of $$16,000.$ These were half for the program service and one$-$fourth heach for the two supporting services. $(13)$ Receives an unrestricted pledge of $$200,000.$ Watson will collect the money in five years and does not expect any part to be uncollectible. Present value at inception is $$149,000,$ but inter est for the year to to date is $$6\mathrm{.}000.(14)$ Computes depreciation of $$40,000,60$ percent for health care, $30$ percent for administrative, and $10$ percent for fundraising. $(15)$ Pavs $$15,000$ in interest on the note signed in $(8).$ All of this cost is assumed to be related to health care. a$.$ Prepare a statement of activities for the Watson Foundation for this year. b$.$ Prepare a statement of financial position for the Watson Foundation at the end of this year.

Only prepare the journal entries.