On January $1,2022,$ some residents of the community of Nelson, B$.$C$.,$ formed the Nelson Dog Rescue Society $($NDRS$),$ which was

organized as a not$-$for$-$profit organization and which has as its purpose rescuing dogs suffering from lack of care.

Initial funding was provided by a wealthy individual who made an endowment contribution of $$100,000$ which was invested in

bonds and generated income during the year of $$7,000.$ The donor placed no restrictions on the use of the income produced by

the investment of the endowment contribution.

During the year unrestricted donations of $$120,000$ were received. A restricted donation of $$50,000$ was received on June $15,$

which must be used to purchase kennels for the dogs. On July $1,2023$ kennels costing $$50,000$ were purchased and put into use

on that date. The kennels have a useful life of $5$ years with no residual value.

During the year ended December $31,2023,$ the organization incurred the following costs $($all paid in cash except as noted below$)$:

At December $31,2023,$ the only outstanding payables were for $$700$ relating to the food and other supplies $($the $$700$ is included in

the $$16,800).$ Of the $$45,000$ wages and benefits, $$5,000$ was unpaid at December $31,2023.$

NDRS uses fund accounting and the restricted fund method of recording contribution revenues. Three funds are used a general

fund, a capital fund for funding and purchase of capital assts, and an endowment funds.

Required:

Prepare a statement of operations and fund balance for the Nelson Dog Rescue Society for the year ended December $31,$

$(8$ marks$)$

Prepare a statement of financial position of the Nelson Dog Rescue Society as at December $31,2023.(4$ marks$)$

NDRS is considering purchasing a building to use for its programs. The bookkeeper has heard that there may be options

available for the society in recording the purchase and use of capital assets. What criteria would the NDRS need to meet to take

advantage of these options? What are the options if the NDRS meets the criteria? $(2$ marks$)$