Maison Hope (Maison) is a not for profit organization established over 40 years ago It provides care services to seniors in the local community Fifteen years ago, it raised $2,800,000 of restricted funds to fully fund the purchase of land and to construct and equip a new residence In 2024, it undertook a new public campaign to raise funds to replace some of its equipment and expand the home All capital acquisitions and funds restricted for the replacement and expansion of the home are reported in the capital fund The following are the unclassified statements of financial position for the two funds of Maison at December 31, 2024 Additional Information for 2025 Every month, the home bills the provincial government and its residents for home services The accounts are due in 30 days Total billings for the year were $1,101,000 Collections of accounts receivable totalled $1,087,000 Accounts receivable written off as uncollectible amounted to $11,000 The estimate of doubtful accounts was 10 of accounts receivable outstanding at December 31, 2025 The home received $500,000 from the estate of one of its founders The donor requested that the principal not be spent but invested in government bonds The interest income from the bonds is restricted for recreational activities, which are accounted for in the general fund The home received unrestricted donations of $50,000 and interest revenue of $30,000 from the bonds in the endowment fund The cash received for interest was spent on recreational projects and is included in operating expenses The home paid the following amounts during the year Operating expenses $1,125,000 Inventory of supplies 60,000 Total $1,185,000 Equipment costing $100,000 was acquired using funds from the capital fund The accounts payable at the end of 2024 and 2025 consisted of the following 2024 2025 Operating expenses $20,000 $25,000 Inventory of supplies 12,000 15,000 Total $32,000 $40,000 No entries affecting accounts payable were made during the year Supplies on hand at the end of the year were $16,000 Depreciation was $44,000 for the building and $51,000 for the equipment The cost of these capital assets was fully funded by contributions restricted for the purchase of these assets On December 31, 2025, the fair value of the marketable securities in the capital fund was $300,000 These securities are being held until the funds are needed for future expansion of the home The future expansion will not likely occur until 2028, at the earliest Any income on these funds is restricted for use in the capital fund The investment is classified at FVTPL for reporting purpose Required Prepare a classified statement of financial position for the three funds at December 31, 2025, assuming that Maison Hope uses the deferral method combined with fund accounting Capital Fund $ 216,000 General Fund $ 20,000 137,000 (17,000) 14,000 Cash Accounts receivable Allowance for doubtful accounts Inventory of supplies Investment in marketable securities Land Building Accumulated depreciation of building Equipment Accumulated depreciation of equipment Totals 284,000 370,000 1,760,000 (528,000) 675,000 (540,000) $2,237,000 Total $ 236,000 137,000 (17,000) 14,000 284,000 370,000 1,760,000 (528,000) 675,000 (540,000) $2,391,000 $154,000 $ 32,000 Accounts payable Deferred contributions building and equipment Deferred contributions future expansion Net assets contributed for land Unrestricted net assets Totals $1,367,000 500,000 370,000 $ 32,000 1,367,000 500,000 370,000 122,000 $2,391,000 122,000 $154,000 $2,237,000 Capital Fund $ 216,000 General Fund $ 20,000 137,000 (17,000) 14,000 Cash Accounts receivable Allowance for doubtful accounts Inventory of supplies Investment in marketable securities Land Building Accumulated depreciation of building Equipment Accumulated depreciation of equipment Totals 284,000 370,000 1,760,000 (528,000) 675,000 (540,000) $2,237,000 Total $ 236,000 137,000 (17,000) 14,000 284,000 370,000 1,760,000 (528,000) 675,000 (540,000) $2,391,000 $154,000 $ 32,000 Accounts payable Deferred contributions building and equipment Deferred contributions future expansion Net assets contributed for land Unrestricted net assets Totals $1,367,000 500,000 370,000 $ 32,000 1,367,000 500,000 370,000 122,000 $2,391,000 122,000 $154,000 $2,237,000

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Maison Hope (Maison) is a not-for-profit organization established over 40 years ago. It provides care services to seniors in the local community. Fifteen years ago,

Maison Hope (Maison) is a not-for-profit organization established over 40 years ago. It provides care services to seniors in the local community. Fifteen years ago, it raised $2,800,000 of restricted funds to fully fund the purchase of land and to construct and equip a new residence. In 2024, it undertook a new public campaign to raise funds to replace some of its equipment and expand the home.

All capital acquisitions and funds restricted for the replacement and expansion of the home are reported in the capital fund.

The following are the unclassified statements of financial position for the two funds of Maison at December 31, 2024: image text in transcribed

Additional Information for 2025:

Every month, the home bills the provincial government and its residents for home services. The accounts are due in 30 days. Total billings for the year were $1,101,000.
Collections of accounts receivable totalled $1,087,000. Accounts receivable written off as uncollectible amounted to $11,000.
The estimate of doubtful accounts was 10% of accounts receivable outstanding at December 31, 2025.
The home received $500,000 from the estate of one of its founders. The donor requested that the principal not be spent but invested in government bonds. The interest income from the bonds is restricted for recreational activities, which are accounted for in the general fund.
The home received unrestricted donations of $50,000 and interest revenue of $30,000 from the bonds in the endowment fund. The cash received for interest was spent on recreational projects and is included in operating expenses.
The home paid the following amounts during the year:

Operating expenses	$1,125,000
Inventory of supplies	60,000
Total	$1,185,000

Equipment costing $100,000 was acquired using funds from the capital fund.
The accounts payable at the end of 2024 and 2025 consisted of the following:

	2024	2025
Operating expenses	$20,000	$25,000
Inventory of supplies	12,000	15,000
Total	$32,000	$40,000

No entries affecting accounts payable were made during the year.

Supplies on hand at the end of the year were $16,000.
Depreciation was $44,000 for the building and $51,000 for the equipment. The cost of these capital assets was fully funded by contributions restricted for the purchase of these assets.
On December 31, 2025, the fair value of the marketable securities in the capital fund was $300,000. These securities are being held until the funds are needed for future expansion of the home. The future expansion will not likely occur until 2028, at the earliest. Any income on these funds is restricted for use in the capital fund. The investment is classified at FVTPL for reporting purpose

Required

Prepare a classified statement of financial position for the three funds at December 31, 2025, assuming that Maison Hope uses the deferral method combined with fund accounting.

Capital Fund $ 216,000 General Fund $ 20,000 137,000 (17,000) 14,000 Cash Accounts receivable Allowance for doubtful accounts Inventory of supplies Investment in marketable securities Land Building Accumulated depreciation of building Equipment Accumulated depreciation of equipment Totals 284,000 370,000 1,760,000 (528,000) 675,000 (540,000) $2,237,000 Total $ 236,000 137,000 (17,000) 14,000 284,000 370,000 1,760,000 (528,000) 675,000 (540,000) $2,391,000 $154,000 $ 32,000 Accounts payable Deferred contributions - building and equipment Deferred contributions future expansion Net assets contributed for land Unrestricted net assets Totals $1,367,000 500,000 370,000 $ 32,000 1,367,000 500,000 370,000 122,000 $2,391,000 122,000 $154,000 $2,237,000 Capital Fund $ 216,000 General Fund $ 20,000 137,000 (17,000) 14,000 Cash Accounts receivable Allowance for doubtful accounts Inventory of supplies Investment in marketable securities Land Building Accumulated depreciation of building Equipment Accumulated depreciation of equipment Totals 284,000 370,000 1,760,000 (528,000) 675,000 (540,000) $2,237,000 Total $ 236,000 137,000 (17,000) 14,000 284,000 370,000 1,760,000 (528,000) 675,000 (540,000) $2,391,000 $154,000 $ 32,000 Accounts payable Deferred contributions - building and equipment Deferred contributions future expansion Net assets contributed for land Unrestricted net assets Totals $1,367,000 500,000 370,000 $ 32,000 1,367,000 500,000 370,000 122,000 $2,391,000 122,000 $154,000 $2,237,000