The Far North Centre (the Centre) is an anti poverty organization funded by contributions from governments and the general public For a number of years, it has been run by a small group of permanent employees with the help of part timers and dedicated volunteers. It owns its premises, which are in the process of being renovated. The funds for this were obtained through a special capital fund campaign carried out last year. Its main program is the dolly provision of meals to the needy. It also distributes clothing, most of which is donated. Operating funds come from government grants, interest earned from endowment investments, and a public campaign held in the latter part of each year to raise funds for the needs of the next fiscal year. The Centre maintains its records in accordance with the deferral method of accounting for contributions. Fund accounting is not used. The organization's statement of financial position on January 1, Year 6, is shown below. TAR NORTH CENTRE STATEMENT OF FINANCIAL POSITION January 1, Year 6 Current Arts Cash 5398,500 Pledes receivable 816,000 Allowance for collectible pledges (36,000) Grants receivable 436,000 2,114,500 Investments 435,000 Capital assets Land and buildings 814,000 Furniture and equipment 559.000 Accumulated depreciation (666,500) 706,500 $3,256,000 Current Liabilities Accounts payable $ 480,200 Wages payable 169,500 Accrued liabilities 13 100 662,500 Deferred Revenue Deferred contribution revenue 050,000 an FAR NORTH CENTRE STATEMENT OF FINANCIAL POSITION January 1, Year 6 Current Assets Cash Pledges receivable Allowance for uncollectible pledges Grants receivable $ 898,500 816,000 (36,000) 436,000 2,114,500 435,000 3 Investments Capital assets Land and buildings Furniture and equipment Accumulated depreciation 814,000 559,000 (666,500) 706,500 $3,256,000 Current Liabilities Accounts payable Wages payable Accrued liabilities $ 480,200 169,500 13,100 662,800 Deferred Revenue Deferred contribution revenue Deferred unspent contributions for capital assets Deferred contributions related to capital assets 858,000 489,400 282,500 1,629,900 Net Assets Net assets restricted for endowment purposes Unrestricted net assets 478,500 484,800 963,300 $3,256,000 The following transactions took place in Year 6: 1 $60.900 from endowment fiind cash was invested in marketable securities The following transactions took place in Year 6: 1. $60,900 from endowment fund cash was invested in marketable securities. 2. Office equipment costing $5,300 was purchased with operating fund cash. 3. Invoices totalling $1,605,000 were received for goods and services. These involces were recorded as accounts payable and were allocated 55% to food program, 20% to clothing program, and 25% to administration. 4. The capital fund grants receivable of $168,500 were collected in full, and the $18.200 in accounts payable was paid. During Year 6. building renovations costing $378,000 and equipment purchases of $105,000 were made of this cost. 90% was paid, with the balance held back and still owing at year-end. 5. Operating fund accounts payable amounting to $1,645,000 and the wages payable and accrued abilities at the beginning of the year were all paid 6. All of the operating fund pledges receivable and grants receivable of $267,500 7. The deferred revenue from the Year 5 tundraising campaign was made up of the following: 14 Contributions for Year 6 activities 16 Lessi Campaign expense $1,406,000 548,000 $ 58,00 The Centre runs the campaign with its own people and is fully responsible for all decisions made during the campaign. 8. Goverment grants for operating purposes totalled $881,500, of which $790,000 was received during the year, with the balance expected early in Year 7. 9. The total wage costs for the year amounted to $222,500, of which $129,000 was paid and $93.500 is payable at year end. These costs are to be allocated 40% each to the food and clothing programs, with the balance to administration 10. The campaign to raise funds for next year's operations was held in December, Cash of $576,000 was collected and pledges of $748.000 were received. It is expected that 5% of these pledges will be uncollectible. Total fundraising costs were $536,000, of which $104,500 is still owed to suppliers 11. An endowment contribution of $9.100 cash was received. In addition, the investments in the endowment fund earned $33.500 in 12. The annual depreciation on the buildings and equipment amounted to $100.000, interest Other Information: 13. Seventy percent of the depreciable capital assets at the end of the year were purchased with restricted contributions Required: (n) Prepare the journal entries necessary to reflect the Year 6 events. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list X Record investment in marketable securities. R > B Record purchase of equipment. C Record invoices received and allocated to food and clothing program and to administration Record grants received and receivable E Record purchase of buildings and equipment, Record the transfer of campaign contributions equal to costs of renovations and new equipment. Credit G Record settlement of accounts payable, wages payable Note malente hac hand G Record settlement of accounts payable, wages payable and accrued liabilities. H Record cash received on operating pledges and grants receivable from the beginning of the year. 1 Record contributions reduived for the year. J Record government grants received for current year and receivable for next year. K Record wage cost incurred and allocated to food and clothing program and to administration. L Record entry for pledges received and cash collected on Note. iournal entry has been entered B Record purchase of equipment. C Record invoices received and allocated to food and clothing program and to administration Record grants received and receivable E Record purchase of buildings and equipment, Record the transfer of campaign contributions equal to costs of renovations and new equipment. Credit G Record settlement of accounts payable, wages payable Note malente hac hand G Record settlement of accounts payable, wages payable and accrued liabilities. H Record cash received on operating pledges and grants receivable from the beginning of the year. 1 Record contributions reduived for the year. J Record government grants received for current year and receivable for next year. K Record wage cost incurred and allocated to food and clothing program and to administration. L Record entry for pledges received and cash collected on Note. iournal entry has been entered