The Perch Falls Minor Hockey Association was established in Perch Falls in January 2021. Its mandate is to promote recreational hockey in the small community of Peach Falls. With the support of the provincial government, local business people, and many individuals, the association raised sufficient funds to build an indoor hockey arena and it also established an endowment fund for paying travel costs to tournaments on an annual basis.

The following schedule summarizes the cash flows for the year ended December 31, 2021:

PERCH FALLS MINOR HOCKEY ASSOCIATION

($000s)

	Operating Fund	Capital Fund	Endowment Fund
Cash inflows
Government grant for operating costs	$ 90
Government grant for hockey arena		$ 500
Corporate donations for hockey arena		460
Registration fees	50
Contribution for tournaments			$ 50
Rental of hockey arena	70
Interest received			3
Total	210	960	53
Cash outflows
Operating expenses	205
Construction of hockey arena		960
Purchase of marketable securities			50
Travel costs for tournament			3
Total	205	960	53
Cash, end of year	$ 5	$ 0	$ 0

Additional information:

1. The new hockey arena was completed in late August 2021. The official opening was held on August 30 with a game between the Perch Falls Old-Timers and the local fire fighters. The arena is expected to have a 40-year useful life and no residual value.

2. A long-time resident of Perch Falls donated the land on which the arena was built. The land was valued at $100,000. The association gave a donation receipt to the donor.

3. A businessman of Perch Falls donated ice making and ice cleaning equipment to the association. A receipt for $60,000 was issued for the donation. The equipment has a useful life of 10 years and no residual value.

4. The donation for tournaments was contributed on January 1, 2021 with the condition that the principal amount of $50,000 be invested in 6% corporate bonds. The interest earned on the investment can be used only for travel costs for out-of-town tournaments. All investments in bonds will be held tom their maturity date.

5. The provincial government pledged $100,000 a year for operating costs. 90% of the grant is advanced throughout the year. Upon receipt of the associations annual report, the government will issue the last 10% of the annual grant to the association.

6. Registration fees and rental fees for the hockey arena are received at the beginning of the hockey season and cover the entire season, from September 1, 2021 to April 30, 2022.

7. At the end of the year, the association owed $7,000 for services received in the month of December.

8. The association wants to use the restricted fund method of accounting for contributions and to use three separate funds operating fund, capital fund, and endowment fund. All capital assets are to be capitalized and amortized, as applicable, over their estimated useful lives.

Required

Prepare a statement of financial position and statement of revenue and expenses for each of the three funds as at and for the year ended December 31, 2021.