In $2017,$ 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 $$10$ mil. It was quickly able to raise $$6$ mil, all of which donor resticted. It borrowed the balance, issuing a five $-$year, $8$ percent term note for $$4$milion.

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 intereset on temporary investments. It incurred and paid $$0\mathrm{.}32$ millionin interest on the note. In addition, as requiered by the note, it placed $$0\mathrm{.}7$ million in a reseve fund$($ a specially dedicated bank account$)$ for the repayment of the debt.

$1$ To show how these transactions will be reflected on the NBA's financial statements, prepare a December $31,2017,$ statement of financial position and statemnet of activities. Asume that these are the only transactions in which the organization engaged and that all of the cash $,$ except that in the reserve fund, has been invested in short term marketable securities$.$ Be sure to properly classify all resources as to whether are temporarily restricted or unrestricted.