Fairchild Centre is an NFPO funded by government grants and private donations. It was established on January 1, Year 5, to provide counselling services and a drop-in centre for single parents. On January 1, Year 5, the centre leased an old warehouse in the central part of Smallville for $1,850 per month. It carried out minor renovations in the warehouse to create a large open area for use as a play area for children and three offices for use by the executive director and counsellors. The lease runs from January 1, Year 5, to June 30, Year 7. By that time, the centre hopes to move into new quarters that are more suitable for the activities carried out. The following schedule summarizes the cash flows for the year ended December 31, Year 5: Cash inflows : Government grant for operating costs (Note 1) $ 55,500 Donations from individuals with no restrictions 70,000 Donations from individuals for rent of warehouse for 24 years 55,500 Donations from individuals for purchase of land (Note 3) 64, 380 OBE 'SDZ Cash outflows: Renovations of warehouse 69,000 Salary of executive director (Note 4) 31,900 Fees paid to counsellors (Note 4) 24,000 Rent paid for 24 years 55,500 Other operating expenses 23,000 203, 400 Cash, end of year $ 41,980 Additional Information 1. The provincial government agreed to provide an operating grant of $55,500 per year. In addition, the government has pledged to match contributions collected by the centre for the purchase of land for construction of a new complex for the centre. The maximum contribution by the government toward the purchase of land is $111,000. 2. The centre has signed an agreement to purchase a property in the downtown area of Smallville for $249,750. There is an old house on the property, which is currently used as a rooming house. The closing date is any time between July 1, Year 6, and December 31, Year 6. The centre plans to demolish the existing house and build a new complex.3. The centre has recentlyI oomrnenced a tundraisirrg program to raise rnds to purchase the land and construct a new building. So for. $54,351: has been raised from Individuals toward the purchase of the land. In the NEW year. the centre will focus its efforts to solicit donations from businesses in the area. The provincial government will advance the funds promised under its pledge on the closing date forthe purchase ofthe property. 4. All the people working for the centre are volunteers except for the executive director and the counsellors. The executive director receives a salary of $343M a year. while the counsellors bill the centre for professional services rendered based on the number of hours they worlt at the oentre. The director has not yet reoeived her salary for the month of December. One of the counsellors received an advance at $1,409 in December. Year 5. for work to be perfontted in .Ia nuary. "rear 6. 5. The centre wishes to use the deferral method at accounting for contributions and to segregate its net assets between restricted and unrestricted. It capitalizes the cost at capital assets and amortizes the capital assets over their useful lives. Raqulrcd: ta: Prepare thejournal entry to record the pledge, It applicable. [Omit $ slgn In your response} more]. Journal. Debit credit [Click to select] V l:| {clinic to ache) v |:| [h] Prepare a statement of operations for the Falrchild Centre for the year ended December 31. 'iiear 5. {Input all amounts as positive values. Dmlt $ sign In your response.) mm Ems-inputs\" smmdhiwal,soar5 hem-l Donating great tool. provincial government 3 Donations tro- inctivictuaia uueatrioted Donations to: rent. at warehouse