Preston Library, a nonprofit organization, presented the following statement of financial position and statement of activities for its fiscal year ended February 28, 2019.

Preston Library
Statement of Financial Position
February 28, 2019
Assets	Unrestricted	Temporarily Restricted
Current Assets
Cash	$285,000	$80,000
Grants Receivable	80,000
Prepaid Expense	65,000
Total	430,000
Investments (at market)	1,020,000
Land, Building, and Equipment (less Acc Dep of $50,000)	530,000
Total Assets	$1,980,000	80,000
Liabilities and Fund Balances
Current Liabilities
Accounts Payable and Accrued Expenses	$150,000
Total	150,000
Long-Term Debt	200,000
Fund Balances	1,630,000	80,000
Total Liabilities and Fund Balances	$1,980,000	$80,000

Preston Library
Statement of Activities
for Year Ended February 28, 2019
Support and Revenue	Unrestricted	Temporarily Restricted
Support and Revenue
Grants	$ 70,000	$ -
Gifts	300,000	80,000
Total	370,000	80,000
Revenue
Service Fees	22,000
Book Rentals and Fines	107,000
Investment Income	71,000	-
Total	200,000
Total Support and Revenue	$ 570,000	$ 80,000
Expenses
Program Services
Circulating Library	$ 212,000
Research Library	86,000
Exhibits	20,000
Community Services	10,000
Total	328,000	0
Supporting Services
General and Administrative	175,000
Fund Raising	111,000
Total	286,000	0
Total Expenses	614,000	0
Increase (decrease) in Net Assets	(44,000)	80,000
Fund Balances - Beginning of Year	1,674,000	-
Fund Balances - End of Year	$ 1,630,000	$ 80,000

The following transactions occurred during the fiscal year ended February 28, 2020.

1. Fees were billed as follows:

Service fees $30,000

Book rentals 43,000

Book fines 78,000

1. $40,000 of the Grant Receivable was received. Another grant in the amount of $20,000 was promised.
2. Contributions in the amounts summarized below were received:

Unrestricted $215,000

Restricted 108,000

1. Investment income totaled $75,000 for the year.
2. Vouchers for the year were approved as follows:

Circulating library $189,000

Research library 74,000

Exhibits 15,000

Community services 12,000

General and administrative 166,000

Fund raising 103,000

Total $559,000

1. During the year, $500,000 worth of vouchers were paid.

Adjustment Data

1. Accounts Payable and Accrued Expenses at February 28, 2020, should be $217,000. The difference should be allocated to the following expenses:

Research library $5,000

General and administrative 3,000

1. Additions to the research library in the amount of $68,000 that were approved in (5) above were made in accordance with the terms of a contribution that had been received earlier and that was restricted for that purpose.
2. The current market value of the investments is $1,035,000 (no investment transactions occurred).
3. Depreciation amounted to $9,000 for the year. It should be allocated as follows:

Circulating library $3,500

Research library 2,900

General and administrative 2,600

1. Prepaid Expenses should be $60,000. The difference should be allocated to:

Exhibits $3,700

General and administrative 1,300

Required:

1. Prepare the statement of financial position and the statement of activities for the year ended February 28, 2020. Please show how you came up with the answers below

Part B

PRESTON LIBRARY

Statement of Financial Position, February 28, 2020

Assets Current Assets Cash Grants Receivable Prepaid Expenses Total Investments (at market) Land, Buildings, and Equipment Less accumulated depreciation of $59,000 Total Assets Liabilities and Fund Balances Current Liabilities Accounts Payable & Accrued Expenses Total Long-term Debt Fund Balances Total Liabilities and Fund Balances

Unrestricted $334,000 60,000 60,000 454,000 1,035,000 521,000 $2,010,000 $ 217,000 217,000 200,000 1,593,000 $2,010,000

Temporarily Restricted $120,000 ________ $120,000 120,000 $ 120,000