Preparation of not-for-profit journal entries and financial statements lessons and possible careers as commercial airline pilots. At the end of last year, Wings reported the following trial balance: At year-end, the investments are allocated as follows: These investments earn a 5% cash return during the following year. During the following year, Wings received $2,800,000 of unrestricted donations and $325,000 of donations whose use is restricted by donors as to use. All contributions are on account when made. contributions receivable and paid $2,900,000 of accounts payable. a. Prepare journal entries for the organization's financial activities during the year. b. Prepare the year-end statement of activities and statement of financial position. Note: Use a negative sign with your answer to indicate a decrease in net assets or release of net assets from restriction. \begin{tabular}{|l|r|} \hline \multicolumn{2}{|c|}{ Statement of Financial Position } \\ \hline Investments & 2,520,000 \\ \hline Contributions receivable & 3,000,000 \\ \hline Total current assets & 2,740,000 \\ \hline Property plant and equipment, net & 1,400,000 \\ \hline Total assets & $4,140,000 \\ \hline Cash overdraft & $60,000 \\ \hline Payables & $110,000 \\ \hline Total current liabilities & 170,000 \\ \hline Long-term liabilities & 685,000 \\ \hline Total liabilities & 855,000 \\ \hline Net assets-without donor restrictions & 1,588,000 \\ \hline Net assets-with donor restrictions & 1,697,000 \\ \hline Total net assets & 3,285,000 \\ \hline Total liabilities and net assets & $4,140,000 \\ \hline \hline \end{tabular}