LibraryPreston Library, a nonprofit organization, presented the following statement of financial position and statementof activities for its fiscal year ended February 28, 2014.Preston LibraryStatement of Financial PositionFebruary 28, 2014

Temporarily Assets UnrestrictedRestricted Current AssetsCash...... .........$285,000 $80,000

Grants Receivable.......................................................................................................80,000

Prepaid Expenses.......................................................................................................65,000

Total............................................................................................................................430,000

Investments (at market).............................................................................................1,020,000

Land, Building, and Equipment(less accumulated depreciation of ....................$50,000)530,000

Total Assets......................................................................................................$1,980,000$80,000

Liabilities and Fund Balances

Current Liabilities

Accounts Payable and Accrued Expenses.......................................................................$150,000

Total.................................................................................................................................. 150,000

Long-Term Debt....................................................................................................... .........200,000

Fund Balances....................................................................................................1,630,00080,000

Total Liabilities and Fund Balances..................................................................$1,980,000$80,000

Preston LibraryStatement of Activitiesfor Year Ended February 28, 2014

TemporarilySupport and RevenueUnrestrictedRestrictedSupportGrants$70,000$—0—Gifts300,000 80,000

Total.......................................................................................................................370,000 80,000

RevenueService Fees....................................................................................................22,000

Book Rentals and Fines...................................................................................................107,000

Investment Income..............................................................................................................71,000

Total...............................................................................................................................200,000—0—

Total Support and Revenue..............................................................................................$570,000$80,000

. ExpensesProgram ServicesCirculating library...........................................................................$212,000

Research library...............................................................................................................................86,000

Exhibits.............................................................................................................................................20,000

Community services..........................................................................................................................10,000

Total..............................................................................................................................................328,000—0—

Supporting ServicesGeneral and administrative..............................................................................175,000

Fund raising.......................................................................................................................................111,000

Total.................................................................................................................................................286,000—0—

Total Expenses.................................................................................................................................614,000—0—

Increase (decrease) in net assets..............................................................................................(44,000)80,000

Fund Balances—beginning of year1..............................................................................................,674,000—0—

Fund Balances—end of year.....................................................................................................$1,630,000$80,000

The following transactions occurred during the fiscal year ended February 28, 2015.

1.Fees were billed as follows:Service fees$30,000 Book rentals43,000 Book fines78,000

2.$40,000 of the Grant Receivable was received. Another grant in the amount of $20,000 was promised.

3.Contributions in the amounts summarized below were received:Unrestricted$215,000Restricted108,000

4.Investment income totaled $75,000 for the year.

5.Vouchers for the year were approved as follows:Circulating library$189,000 Research library74,000 Exhibits15,000 Community services12,000 General and administrative166,000 Fund raising103,000 Total$559,000

6.During the year, $500,000 worth of vouchers were paid.Adjustment Data

7.Accounts Payable and Accrued Expenses at February 28, 2015, should be $217,000. The difference shouldbe allocated to the following expenses:Research library$5,000General and administrative3,000

8.Additions to the research library in the amount of $68,000 that were approved in (5) above were made inaccordance with the terms of a contribution that had been received earlier and that was restricted for thatpurpose.

9.The current market value of the investments is $1,035,000 (no investment transactions occurred).

10.Depreciation amounted to $9,000 for the year. It should be allocated as follows:Circulating library$3,500Research library2,900General and administrative2,600

11.Prepaid Expenses should be $60,000. The difference should be allocated to: Exhibits$3,700 General and administrative1,300:

A.Prepare journal entries to record the transactions. (Adjustments)

B.Prepare the statement of financial position and the statement of activities for the year ended February 28,2015.