A-for-profit entity is working to create a cure for a disease. The charity starts the year with one asset, cash of $700,000. Net assets without donor restrictions are $400,000. Net assets with donor restrictions are $300,000. Of the restricted net assets, $160,000 is to be held and used to buy equipment, $40,000 is to be used for salaries, and the remaining $100,000 must be held permanently. The permanently held amount must be invested with 70 percent of any subsequent income used to cover advertising for fundraising purposes. The rest of the income is unrestricted.

During the current year, this health care entity has the following transactions:

1. Receives unrestricted cash gifts of $210,000.
2. Pays salaries of $80,000, with $20,000 of that amount coming from purpose-restricted donated funds. Of the total salaries, 40 percent is for administrative personnel. The remainder is divided evenly among individuals working on research to cure the disease and individuals employed for fundraising purposes.
3. Buys equipment for $300,000 by signing a long-term note for $250,000 and using restricted funds for the remainder. Of this equipment, 80 percent is used in research. The remainder is split evenly between administrative activities and fundraising. The donor of the restricted funds made no stipulation about the reporting of the equipment purchase.
4. Collects membership dues of $30,000 in cash. Members receive a reasonable amount of value in exchange for these dues including a monthly newsletter that describes research activities. By the end of the year, 112/112 of this money had been earned.
5. Receives $10,000 in cash from a donor. The money must be conveyed to a separate charity doing work on a related disease.
6. Receives investment income of $13,000 from the permanently restricted net assets.
7. Pays $2,000 for advertising. The money comes from the income earned in (f).
8. Receives an unrestricted pledge of $100,000 that will be collected in three years. The entity expects to collect the entire amount. The pledge has a present value of $78,000. Related interest (considered contribution revenue) of $5,000 is earned prior to the end of the year.
9. Computes depreciation on the equipment bought in (c) as $20,000.
10. Spends $93,000 on research supplies that are used up during the year.
11. Owes salaries of $5,000 at the end of the year. None of this amount will be paid from restricted net assets. Half of the salaries are for individuals doing fundraising, and half for individuals doing research.
12. Receives a donated painting that qualifies as a museum piece being added to the entitys collection of art work that is being preserved and displayed to the public. The entity has a policy that the proceeds from any sold piece will be used to buy replacement art. Officials do not want to record this gift if possible
13. .a. Prepare a statement of activities for this not-for-profit entity for the current year. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)

    Statement of Activities
    For the Year Ended December 31, 20XX
    	Net Assets Without Donor Restrictions	Net Assets With Donor Restrictions
    Contributions
    Contribution revenue
    Contributioninterest
    Earned revenue
    Membership dues
    Investment income
    Net assets released from restrictions:
    Satisfaction of donor restrictions
    Total contributions and earned revenue
    Expenses
    Program service expensesCure disease
    Salaries
    Depreciation
    Supplies
    Total	0	0
    Supporting service expenses General and administrative
    Salaries
    Depreciation
    Total	0	0
    Fundraising
    Salaries
    Advertising
    Depreciation
    Total	0	0
    Total Expenses	0	0
    Change in Net Assets
    Net Assets - Beginning of Year
    Net Assets - End of Year	$0	$0

    Prepare a statement of financial position for this not-for-profit entity for the end of the current year. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)
14. 

b. Prepare a statement of financial position for this not-for-profit entity for the end of the current year. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Statement of Financial Position December 31, 20xx Assets Cash Pledge Receivable Equipment Accumulated Depreciation Total Assets 0 Liabilities Salaries Payable Notes Payable Deferred Revenue Donated Amount Due to Separate Entity Total Liabilities GA 0 $ 0 Net Assets Without Donor Restrictions With Donor Restrictions $ CA 0