The Watson Foundation, a private not-for-profit entity, starts 2020 with cash of $100,000,contributions receivable (net) of $200,000, investments of $300,000, and land, buildings, andequipment (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, $300,000was purpose restricted whereas the other $100,000 had to be held permanently, although thesubsequently earned income is without restriction. Fifty percent of the purpose restricted netassets had to be used to help pay for a new building. The remainder was restricted to the paymentof officer salaries. Donors made no stipulations about the eventual reporting of buildings and otherlong-lived assets when acquired. Watson has one program service (health care) and twosupporting services (fundraising and administrative).During the current year, Watson Foundation has the following transactions.1. Computed interest of $20,000 on the unrestricted contribution receivable.2. Received cash of $100,000 from the contributions receivable and wrote off another $4,000as uncollectible.3. Received unrestricted cash donations of $180,000.4. Received $23,000 in cash that must be spent for a particular type of office machine withinthe next year or the money must be returned.5. Paid salaries of $90,000. Of that amount, $22,000 came from restricted funds. The paymentwas made to individuals doing health care work.6. Spent the $23,000 in (4) for the appropriate office machine.7. Received 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 sochoose.8. Bought a building for $500,000 by signing a long-term note for $450,000 and usingrestricted funds for the remainder.9. Collected annual membership dues of $30,000. Individuals receive substantial benefits fromtheir memberships. By the end of the year, two-thirds of the time for the averagemembership has passed.10. Received unrestricted income of $47,000 generated by net assets that must be heldpermanently.11. The board of directors of the Watson Foundation vote to set aside $9,000 of its investmentsfor emergency purposes.12. Paid 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 supportingservices.13. Received an unrestricted pledge of $200,000. Watson will collect the money in five yearsand does not expect any part to be uncollectible. Present value at inception is $149,000, butinterest for the year to date is $6,000.14. Computed depreciation of $40,000, 60 percent for health care, 30 percent foradministrative, and 10 percent for fundraising.15. Paid $15,000 in interest on the note signed in (8). All of this cost is assumed to be related tohealth care. Required:a. Prepare a statement of activities for the Watson Foundation for this year. (Negative amounts should be indicated by a minus sign.)WATSON FOUNDATIONSTATEMENT OF ACTIVITIESFor Year Ending December 31, 2020Net AssetsNet AssetsWithout DonorWith DonorRestrictionsRestrictionsContribution revenue:DonationsInterestTotalInvestment incomeExchange revenues-membershipsTotal contributions and revenuesNet assets released from restrictionsTotal contributions, revenues, and net assetsreleased from restrictionsExpenses:Program services-healthcareSalaryRentAdvertisingUtilitiesDepreciationInterestSupporting services-fundraisingRentAdvertisingUtilitiesDepreciationSupporting services-administrativeRentAdvertisingUtilitiesDepreciationTotal expensesExcess of total contributions, revenues, and netassets released from restriction over expensesNet assets at beginning of yearNet assets at end of year

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Non Profit Organisation
The purpose of establishing the non profit organisation is the primary motor…

Required: a. Prepare a statement of activities for the Watson Foundation for this year. (Negative amounts should be indicated by a minus sign.) WATSON FOUNDATION STATEMENT OF ACTIVITIES For Year Ending December 31, 2020