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 was 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 repayment of the debt. Without Donor Restrictions

$1$

$.]$

With Donor Restrictions

$

$

$ To show how these transactions would be reflected on the NBA's financial statements, prepare a December $31,20$X$0,$ statemen

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

$

Liabilities and Fund Balance 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

The proceeds from the bonds should be reported as$($c$)$

Identify whether the $$0\mathrm{.}7$ million in the reserve fund should be reported as restricted by donors or not.

The $$0\mathrm{.}7$ million in the reserve fund should be reported as