The Fara Littlebear Soclety is an NFPO funded by government grants and private donations. It was established in Year 5 by the frlends of Fara Littlebear to encourage and promote the work of Native Canadian artists. Fara achieved international recognition for her art depicting Images of journey and exploration. The soclety leased a small building in January Year 5 . The bullding contains a small art gallery on the first floor and office space on the second floor. The soclety spent $79,950 for leasehold Improvements. The art gallery opened for public viewing on April 1, Year 5 . The unadjusted trial balance for the year ended December 31, Year 5, was as follows: Additional Information 1. A wealthy individual donated $70,000 with the condition that the principal be invested in low-risk investments. The principal was Invested in long-term bonds, which are expected to be held to maturity. The interest on the bonds is to be used to provide scholarships to aspiring Native artists who wish to study art at a Canadian university or college. The first scholarship of $5,200 was awarded In September Year 5. 2. The artwork consists of 20 paintings from a number of Canadian artists. These paintings are expected to be held for at least 10 years. The paintings will likely appreclate in value over the time they are owned by the art gallery. 3. The soclety signed a five-year lease on the building with an option to renew for one further term of 5 years. The term of the lease commenced on January 1, Year 5 . The total rent pald for the year Included a deposit of $2,500 for the last month's rent. The leasehold improvements were completed on March 31, Year 5. The office space was occupled by the staff of the soclety, and the art gallery was opened for business on April 1, Year 5. 4. Salarles earned but not yet pald amounted to $5,000 at December 31 , Year 5 . 5. The soclety recelved office equipment from a local business person on January 1, Year 5. A donation recelpt for $30,000 was given for this contribution. The office equipment has a useful life of five years with no residual value. 6. The provinclal government provided an operating grant of $100,000 for Year 5 , of which $90,000 was recelved by the end of the year. The remaining $10,000 will be recelved once the soclety provides financlal statements prepared in accordance with GAAP. 7. The soclety will follow Part III of the CPA Canada Handbook and wishes to use the deferral method of accounting for contributions. Requlred: \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ FARA LITTLEBEAR SOCIETY } \\ \hline \multicolumn{4}{|c|}{ Statement of financial position } \\ \hline \multicolumn{4}{|c|}{ At December 31, Year 5} \\ \hline \multicolumn{4}{|l|}{ Assets } \\ \hline Cash & & $ & 5,200 \\ \hline Receivable from provincial government & & & 10,000 \\ \hline Prepaid rent & & & 2,500 \\ \hline Investment in bonds & & & 70,000 \\ \hline Artwork & & & 220,000 \\ \hline \multicolumn{4}{|l|}{ Leasehold improvements } \\ \hline Office equipment & & & 30,000 \\ \hline Accumulated amortization office equipment & & & (6,000) \\ \hline Total assets & & & 331,700 \\ \hline \multicolumn{4}{|c|}{ Liabilities and Net Assets } \\ \hline \multicolumn{4}{|l|}{ Liabilities } \\ \hline Accrued salaries & & $ & 5,000 \\ \hline \multicolumn{4}{|l|}{ Deferred contributions - leaseholds } \\ \hline Deferred contributions - equipment & & & 24,000 \\ \hline Total liabilities & & & 29,000 \\ \hline \multicolumn{4}{|l|}{ Net assets } \\ \hline Net assets in endowment fund & & & 70,000 \\ \hline Net assets in artwork & & & 220,000 \\ \hline \multicolumn{4}{|l|}{ Unrestricted net assets } \\ \hline Total net assets & & & 290,000 \\ \hline Total liabilities and net assets & & $ & 319,000 \\ \hline \end{tabular}