Question

The Nova Community Association was established in January 2013. Its mandate is to promote cultural and recreational activities in the small community of Nova. With the support of the local government, local businesses, and many individuals, the association raised sufficient funds to build a community centre and operate the association for the current year. The following schedule summarizes the cash flows for the year ended December 31, 2013 (in $000s):
Additional information:
1. The new community centre was completed in late August 2013. The official opening was held on August 31 with a barbecue. The centre is expected to have a 40-year useful life and no residual value.
2. A long-time resident of Nova donated the land on which the centre was built. The land was valued at $200,000.
3. On July 1, 2013, a former resident of Nova donated office equipment to the association. The equipment was valued at $20,000. The equipment has a useful life of five years and no residual value.
4. The local government pledged $200,000 a year in support of operating costs, of which 90% is advanced throughout the year. The government will issue the last 10% of the annual grant to the association upon receipt of the association's annual report.
5. Registration fees are charged for fitness classes and other recreational activities. Of the $100,000 collected during 2013, $10,000 were paid in advance for classes and activities beginning in January 2014.
6. The association rents the centre out for dinners and dances. At December 31, 2013, a local sports team owed the association $5,000 for the rental of the centre in November 2012. The association expects to collect the full amount owing.
7. At the end of the year, the association owed $7,000 to instructors for various classes and activities.
8. The association uses two separate funds-an operating fund and a capital fund-and uses the deferral method of accounting for contributions for both funds. All capital assets are to be capitalized and depreciated, as applicable, over their estimated useful lives.
Required
Prepare Nova's statement of financial position at December 31, 2013, in accordance with the CICA Handbook , Part III.


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  • CreatedJune 09, 2015
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