ONLY NEED HELP WITH PART B. CASH, Unrestricted, and with donor restricted amount please. Everything else is correct.

Problem 18-44 (Algo) (LO 18-1, 18-2, 18-4, 18-5)

The Watson Foundation, a private not-for-profit entity, starts 2020 with cash of $100,000, contributions receivable (net) of $200,000, investments of $300,000, and land, buildings, and equipment (net) of $200,000. Net assets without donor restrictions were reported as $400,000, the same figure as the net assets with donor restrictions. Of the restricted net assets, $300,000 was purpose restricted whereas the other $100,000 had to be held permanently, although the subsequently earned income is without restriction. Fifty percent of the purpose restricted net assets had to be used to help pay for a new building. The remainder was restricted to the payment of officer salaries. Donors made no stipulations about the eventual reporting of buildings and other long-lived assets when acquired. Watson has one program service (health care) and two supporting services (fundraising and administrative).

During the current year, Watson Foundation has the following transactions.

Computed interest of $20,000 on the unrestricted contribution receivable.

Received cash of $100,000 from the contributions receivable and wrote off another $4,000 as uncollectible.

Received unrestricted cash donations of $180,000.

Received $23,000 in cash that must be spent for a particular type of office machine within the next year or the money must be returned.

Paid salaries of $90,000. Of that amount, $22,000 came from restricted funds. The payment was made to individuals doing health care work.

Spent the $23,000 in (4) for the appropriate office machine.

Received a cash gift of $12,000 that Watson must convey to another specified charity. However, Watson has the right to give this money to a different organization if officials so choose.

Bought a building for $500,000 by signing a long-term note for $450,000 and using restricted funds for the remainder.

Collected annual membership dues of $30,000. Individuals receive substantial benefits from their memberships. By the end of the year, two-thirds of the time for the average membership has passed.

Received unrestricted income of $47,000 generated by net assets that must be held permanently.

The board of directors of the Watson Foundation vote to set aside $9,000 of its investments for emergency purposes.

Paid rent of $12,000 for the past month, advertising of $15,000, and utilities of $16,000. These were half for the program service and one-fourth each for the two supporting services.

Received an unrestricted pledge of $200,000. Watson will collect the money in five years and does not expect any part to be uncollectible. Present value at inception is $149,000, but interest for the year to date is $6,000.

Computed depreciation of $40,000, 60 percent for health care, 30 percent for administrative, and 10 percent for fundraising.

Paid $15,000 in interest on the note signed in (8). All of this cost is assumed to be related to health care.

Required:

a. Prepare a statement of activities for the Watson Foundation for this year. (Negative amounts should be indicated by a minus sign.)

Answer is complete and correct.

WATSON FOUNDATION
STATEMENT OF ACTIVITIES
For Year Ending December 31, 2020
		Net Assets Without Donor Restrictions	Net Assets With Donor Restrictions
Contribution revenue:
Donations		$203,000selected answer correct	$161,000selected answer correct	$0selected answer correct
Interest		20,000selected answer correct	6,000selected answer correct	0selected answer correct
Total		223,000	167,000	0
Investment income		47,000selected answer correct
Exchange revenuesmemberships		20,000selected answer correct
Total contributions and revenues		$290,000	$167,000	$0
Net assets released from restrictions		72,000selected answer correct	(72,000)selected answer correct	0selected answer correct
Total contributions, revenues, and net assets released from restrictions		$362,000	$95,000	$0
Expenses:
Program serviceshealthcare
Salary	$90,000selected answer correct
Rent	6,000selected answer correct
Advertising	7,500selected answer correct
Utilities	8,000selected answer correct
Depreciation	24,000selected answer correct
Interest	15,000selected answer correct	150,500
Supporting servicesfundraising
Rent	3,000selected answer correct
Advertising	3,750selected answer correct
Utilities	4,000selected answer correct
Depreciation	4,000selected answer correct	14,750
Supporting servicesadministrative
Rent	3,000selected answer correct
Advertising	3,750selected answer correct
Utilities	4,000selected answer correct
Depreciation	12,000selected answer correct	22,750
Total expenses		188,000
Excess of total contributions, revenues, and net assets released from restriction over expenses		174,000selected answer correct	95,000selected answer correct
Net assets at beginning of year		400,000selected answer correct	400,000selected answer correct
Net assets at end of year		$574,000	$495,000

Answer is complete but not entirely correct.

WATSON FOUNDATION
STATEMENT OF FINANCIAL POSITION
December 31, 2020
Assets
Cash		$264,000selected answer incorrect
Contributions receivable (net)		275,000selected answer correct
Investments		291,000selected answer correct
Investmentsinternally restricted		9,000selected answer correct
Land, buildings, and equipment (net)		683,000selected answer correct
Total assets		$1,522,000
Liabilities
Deferred revenues		$10,000selected answer correct
Notes payable		450,000selected answer correct
Total liabilities		$460,000
Net Assets
Without donor restrictions:
Unrestricted	$500,000selected answer incorrect
Board-designated for emergency purposes	9,000selected answer correct	509,000
With donor restrictions		500,000selected answer incorrect
Total net assets		1,009,000
Total liabilities and net assets		$1,469,000