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 $1,500 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)	$	45,000
Donations from individuals with no restrictions		55,000
Donations from individuals for rent of warehouse for 2 years		45,000
Donations from individuals for purchase of land (Note 3)		52,200
		197,200
Cash outflows:
Renovations of warehouse		48,000
Salary of executive director (Note 4)		24,200
Fees paid to counsellors (Note 4)		20,500
Rent paid for 2 years		45,000
Other operating expenses		20,500
		158,200
Cash, end of year	$	39,000

Additional Information

1. The provincial government agreed to provide an operating grant of $45,000 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 $90,000.
2. The centre has signed an agreement to purchase a property in the downtown area of Smallville for $202,500. 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 recently commenced a fundraising program to raise funds to purchase the land and construct a new building. So far, $52,200 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 for the purchase of the 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 $26,400 a year, while the counsellors bill the centre for professional services rendered based on the number of hours they work at the centre. The director has not yet received her salary for the month of December. One of the counsellors received an advance of $1,050 in December, Year 5, for work to be performed in January, Year 6.
5. The centre wishes to use the deferral method of accounting for contributions and to segregate its net assets between restricted and unrestricted. It capitalizes the cost of capital assets and amortizes the capital assets over their useful lives.

Required:

(a) Prepare the journal entry to record the pledge, if applicable. (Omit $ sign in your response.)

General Journal	Debit	Credit
(Click to select) Grants receivable Pledge payable Net assets restricted for land purchase Pledge receivable Net assets restricted for machinery purchased Net assets restricted for building purchased Accounts payable Accounts receivable
(Click to select) Grants receivable Accounts receivable Net assets restricted for building purchased Net assets restricted for machinery purchased Pledge receivable Net assets restricted for land purchase Accounts payable Pledge payable

(b) Prepare a statement of operations for the Fairchild Centre for the year ended December 31, Year 5. (Input all amounts as positive values. Omit $ sign in your response.)

FAIRCHILD CENTRE
Statement of Operations
Year ended December 31, Year 5
Revenues
Operating grant from provincial government		$
Donations from individuals unrestricted
Donations for rent of warehouse
Expenses
Salary of executive director
Fees earned by counsellors
Rent expense
Amortization of leasehold improvements
Other operating expenses
Excess of revenues over expenses		$

(c) Prepare a statement of changes in net assets for the Fairchild Centre for the year ended December 31, Year 5. (Leave no cell blank, be sure to enter "0" wherever required. Omit $ sign in your response.)

FAIRCHILD CENTRE
Statement of Changes in Net Assets
Year ended December 31, Year 5
	Net assets Restricted for Land purchase		Unrestricted Net Assets		Total
Balance, beginning of year	$		$		$
Contributions for purchase of land
Pledge for purchase of land
Excess of revenues over expenses
Balance, end of year	$		$		$