ONLY NEED PROBLEM 12-10

02,5 wirchild Centre is an NFPO funded by government grants and private donations. It was establisbed on January 1. Year to provide counselling services and a dropin centre for single purents On January 1. Year 5 , the centre leased an old warehouse in the central part of Smallville for $1,600 per month, It arried out minor renovations in the warchouse to create a large open arca for use as a play area for children and three. frices for use by the executive director and coonsellors. The lease runs from Janaary 1. Year 5, to June 30, Year 7. By hat time, the centre hopes to move into new quarters that are more suitable for the activities carried out. The following schedule summarizes cash flows for the year ended December 31. Year 5: Notes and Additional Information 1. The provincial government agreed to provide an operatins grant of 548,000 per year. In addition, the government has pledged to match contributions collected by the centre for the purchase of land for construction of a niew coinplex for the centre. The maximum contribution by the government toward the purchase of land is $96,000. 2. The centre has signed an agreement to purchase a property in the downtown area or Smallville for $216,000. There is an old house on the property, which is currently used as a rooming bouve. The closing date is any time between July 1. Year 6 , and December 31, Year 6. The centre plans to demotish the existing house and build a new complex. 3. The centre has recently commenced a fundraising program to raise funds to purchase the land and construct a new building. So far. $55,680 has been raised from indwidaals toaard the purchase of the land. In the new year, the centre will focus its efforts to solicit donations from businesses in the area. The prowincial government will advance the funds promised under its pledes on the closing cute ior the purchuse or the propery. excutive director and the counsellors: The 4. All the people working for the centre are welunters whept for the evecutive director and the counsedlors. The counselloss bill the centre foe professional services executive director receives a salary of 528 , pwo a seat at we cettre. The director has not yet received her salary for the month of December. One of the counsellar receivir a seributions and to segrezate its net assets between performed in January, Year 6 . Required (a) State the assumptions necessary to recognize the pledge from the provincial government pertaining to the purchase of land, and prepare the journal entry to record the pledge, if applicable, (b) Prepare a statement of operations for the Fairchild Centre for the year ended December 31. Year 5 . Show your supporting calculations and state your assumptions. (c) Prepare a statement of changes in net assets for the Fairchild Centre for the year ended December 31 , Year 5 . Problem 12-10 LO2, 4 (CPACanadaadopted)2 All facts about this NFPO are identical to those described in Problem 9, except that the Centre wants to use the restricted fund method of accounting for contributions. The Centre will use two separate funds - operating and capital. The capital fund will capture contributions pertaining to property, building and equipment. Required (a) Prepare the journal entry to record the pledge by the provincial government towards the purchase of land, if applicable, and indicate the fund in which the journal entry would be recorded. (b) Prepare a statement of operations for the Fairchild Centre for each of the two funds for the year ended December 31. Year 5. Show your supporting calculations and state your assumptions. (c) Prepare a statement of changes in net assets for the Fairchild Centre for each of the two funds for the year ended December 31, Year 5