For purposes of external reporting, not$-$for$-$profits $-$ unlike governments in their governmental funds $-$ do not distinguish between plant and other types of resources. In $20$X$0,$ the northwest Ballet Association $($NBA$),$ a not$-$for$-$profit performing arts organization, undertook a major capital campaign to fund a new theater, expected to cost $$10$ million. It was quickly able to raise $$6$ million, all of which as donor restricted. It borrowed the balance, issuing a $5-$year, $8-$percent term note for $$4$ million. During the year, the NBA broke ground on the project and incurred construction costs of $$3\mathrm{.}4$ million. It earned $$0\mathrm{.}52$ million in interest on investments. It incurred and paid $$0\mathrm{.}32$ million in interest on the note. In addition, as required by the note, it placed $$0\mathrm{.}7$ million in a reserve fund $($a specially dedicated bank account$)$ for the the repayment of the debt.

A$1)$ To show how these transactions would be reflected on the NBA's financial statements, prepare a December $31,20$X$0,$ statement of activities. Assume that these were the only transactions in which the organization engaged and that available cash, except that in the reserve fund, had been invested in short$-$term marketable securities$.$

A$2)$ To show how these transactions would be reflected on the NBA's financial statements, prepare a December $31,20$X$0,$ statement of financial position. Assume that these were the only. transactions in which the organization engaged and that all available cash, except that in the reserve fund, had been invested in short$-$term marketable securities$.$

B$)$ Identify whether the contributions from donors and the proceeds from the bonds should be reported. as restricted by donors or not. The contributions from donors should be reported as donor restricted or without donor restricted? The proceeds from the bonds should be reported as donor restricted or without donor restricted?

C$)$ Identify whether the $$0\mathrm{.}7$ million in the reserve fund should be reported as restricted by donor or not. The $$0\mathrm{.}7$ million in the reserve fund should be reported as donor restricted or without donor restricted?To show how these transactions would be reflected on the NBA's financial statements, prepare a December $31,20$X$0,$ statement

of financial position. Assume that these were the only transactions in which the organization engaged and that all available cash,

except that in the reserve fund, had been invested in short$-$term marketable securities$.($Enter amounts in millions rounded to $2$

decimal places, e$.$g$.15\mathrm{.}25.)$

Northwest Ballet Association

Statement of Financial Position

$($in millions$)$

Assets

Cash Designated for Repayment of Long$-$Term Debt

$

Designated for Repayment of Debt

Restricted by Donors

Not Restricted by Donors

Total Assets

$

Liabilities and Fund Balance

Construction in Process

$