Check my work A private not-for-profit entity is working to create a cure for a deadly disease. The charity starts the year with cash of $724,000. Of this amount, unrestricted net assets total $408,000, temporarily restricted net assets total $208,000, and permanently restricted net assets total $108,000. Within the temporarily restricted net assets, the entity must use 90 percent for equipment and the rest for salaries. No implied time restriction has been designated for the equipment when purchased. For the permanently restricted net assets, 80 percent of resulting income must be used to cover the purchase of advertising for fund-raising purposes and the rest is unrestricted. points During the current year, the organization has the following transactions: eBook Print References Received unrestricted cash gifts of $218,000. Paid salaries of $88,000 with $28,000 of that amount coming from restricted funds. Of the total salaries, 50 percent is for administrative personnel and the remainder is evenly divided among individuals working on research to cure the designated disease and individuals employed for fund-raising purposes. Bought equipment for $316,000 with a long-term note signed for $258,000 and restricted funds used for the remainder. Of this equipment, 90 percent is used in research, 5 percent is used in administration, and the remainder is used for fund-raising. Collected membership dues of $38,000. The members receive a reasonable amount of value in exchange for these dues including a monthly newsletter describing research activities. Received $18,000 from a donor that must be conveyed to another charity doing work on a related disease. Received investment income of $21,000 generated by the permanently restricted net assets. As mentioned above, the donor has stipulated that 80 percent of the income is to be used for advertising, and the remainder may be used at the entity's discretion. Paid advertising of $2,800. Received an unrestricted pledge of $180,000 that will be collected in three years. The entity expects to collect the entire amount. The pledge has a present value of $86,000 and related interest (additional contributed support) of $3,800 in the year. uted depreciation on the equipment acquired as $28.000. Spent $101,000 on research supplies that it utilized during the year, Owed salaries of $13,000 at the end of the year. Half of this amount is for individuals doing fund-raising and half for individuals doing research, Received a donated painting that qualifies as a museum piece. It has a value of $880,000. Officials do not want to record this gift if possible. a. Prepare a statement of activities for this not-for-profit entity for this year. b. Prepare a statement of financial position for this not-for-profit entity for this year. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a statement of activities for this not-for-profit entity for this year. Statement of Activities Unrestricted Net Assets Temporarily Restricted Net Assets Permanently Restricted Net Assets Public support Contributions Contribution - interest $ 218,000 01 3,800 0 0 0 Revenue Membership dues Investment income Net assets released from restriction 0 Total public support and revenue Expenses Program service expenses - cure disease Salaries Depreciation Supplies S O Total 0 $ 0 $ $ Program service expenses - cure disease Salaries Depreciation Supplies $ 0 $ 0 $ 0 Total Supporting service expenses - general and administrative Salaries Depreciation $ | $ 0 $ 0 $ Total Fundraising Salaries Advertising Depreciation $ $ 0 $ 0 $ $ 00 Total Total expenses Change in net assets Net assets - Beginning of year Net assets - End of year $ 0 $ 0 $ 0 Required A Required B > Required A Required B Prepare a statement of financial position for this not-for-profit entity for this year. Statement of Financial Position ! Assets $ Total assets Liabilities Total liabilities Net assets Total net assets Total liabilities and net assets