11:51 V423 The Watson Foundation, a private not-for-profit entity, starts 2024 with cash of $100,000; contributions receivable (net) of $200,000; investments of $300,000; and land, buildings, and equipment (net) of $200,000. Net assets without donor restrictions were reported as $400,000, the same figure as the net assets with donor restrictions. Of the restricted net assets, $300,000 was purpose restricted, whereas the other $100,000 had to be held permanently, although the subsequently earned income is without restriction. Fifty percent of the purpose-restricted net assets had to be used to help pay for a new building. The remainder was restricted to the payment of officer salaries. Donors made no stipulations about the eventual reporting of buildings and other long-lived assets when acquired. Watson has one program service ( health care) and two supporting services (fundraising and administrative). During the current year, Watson Foundation has the following transactions: Computes interest of $20,000 on the unrestricted contribution receivable. Receives cash of $100,000 from the contributions receivable and wrote off another $4,000 as uncollectible. Receives unrestricted cash donations of $180,000. Receives $23,000 in cash that must be spent for a particular type of office machine within the next year or the money must be returned. Pays salaries of $90,000. Of that amount, $18,000 came from restricted funds. The payment was made to individuals doing health care work. Spends the $23,000 in (4) for the appropriate office machine. Receives a cash gift of $12,000 that Watson must convey to another specified charity. However, Watson has the right to give this money to a different organization if officials so choose. Buys a building for $500,000 by signing a long-term note for $450,000 and using restricted funds for the remainder. Collects annual membership dues of $30,000. Individuals receive substantial benefits from their memberships. By the end of the year, two-thirds of the time for the average membership has passed. Receives unrestricted income of $43,000 generated by net assets that must be held permanently. The board of directors of the Watson Foundation votes to set section $9,000 of its investments for emergency purposes. Pays rent of $12,000 for the past month, advertising of $15,000, and utilities of $16,000. These were half for the program service and one-fourth each for the two supporting services. Receives an unrestricted pledge of $200,000. Watson will collect the money in five years and does not expect any part to be uncollectible. Present value at inception is $149,000, but interest for the year to date is $6,000. Computes depreciation of $40,000, 60 percent for health care, 30 percent for administrative, and 10 percent for fundraising. Pays $15,000 in interest on the note signed in ( 8). All of this cost is assumed to be related to health care. Required: Prepare a statement of activities for the Watson Foundation for this year. Prepare a statement of financial position for the Watson Foundation at the end of this year. PrevQuestion 1 of 1 Total of 1Visit question mapThis is the last question in the assignment. To submit, use Alt + S. To access other questions, proceed to the question map button.Next Skin question Start Solving