Coldstream (CS) is a not-for-profit organization set up to research using water filters and purifying water straws to create clean safe water. It is being funded by an annual government grant of $525,000 for each of the next 5 years. CS has recently completed its first year of operations and has come to you for advice regarding its first set of financial statements for the year ended December 31, 2021. CS's accounting systems are run by Josh, who has several years experience from the accounting department of a major city planning coop, but who has never done not-for-profit accounting. It is now January 15, 2022 and Josh would like to set up accounting policies that can be used for a least the term of the government grant. He has specifically asked that you provide advice on the following issues. REQUIRED: a) b) c) d) Coldstream completed its first fundraising campaign in December 2021. It was successful and resulted in pledges totaling $100,000, for use at management's discretion, to be collected in March 2022. Josh is hopeful that 95% of the pledges will be collected. i) ii) Explain whether the pledges can be set up as an asset on the statement of financial position as at December 31, 2021. (3 marks) Disregard your answer to (i) and assume that the pledges can be recorded for financial statement purposes. Prepare the journal entry that would be recorded. (3 marks) Coldstream received a donation of a equipment on January 1, 2021. It had a list price of $75,000, but Josh decided that the $75,000 price was unreasonable and recorded the equipment at the nominal price of $10,000. Josh was considering buying a similar equipment for his town use and received a quoted cash price of $70,000. He was told the equipment should last 10 years. Josh would like you to: i) 11) Briefly discuss how CS should account for donated capital assets. (2 marks) Provide all of the journal entries that should be made relating to the equipment for 2021, assuming that CS uses the deferred contribution method of accounting. (5 marks) Coldstream also received a donation of land with a value of $250,000 for a future head office building. Josh would like you to briefly discuss the following, assuming that CS elects to use restricted fund accounting. 1) ii) Indicate how CS would account for the land if it had a separate capital fund. (1 mark) Indicate how CS would account for the land if it had no separate capital asset fund. (Journal entries are not required). (1 mark) Coldstream also received a $200,000 donation on December 31, 2021 with a requirement that the $200,000 must be retained by CS, but that interest on the donation can be spent on operations. Prepare the journal entry CS should record on December 31, 2021 under: Restricted fund accounting, assuming CS has a separate fund set up for such donations. (1.5 mark) i) ii) The deferred contribution method of accounting. (1.5 mark)