All facts about this NFPO are identical to those described in Problem 5, except for the following:

1. The Society will use the restricted fund method of accounting for contributions.

2. The Society will use three separate funds for reporting purposes--operating fund, collections and long-term capital assets fund, and scholarship fund. Long-term capital assets include depreciable assets with a useful life in excess of 5 years, for example leasehold improvements.

3. The cash balance of $5,000 consisted of $1,000 in the scholarship fund and $4,000 in the operating fund.

4. The interest income is retained in the scholarship fund until it is paid out for scholarships.

5. The operating fund loaned $5,850 to the long-term capital asset fund for the shortfall between the cost of leasehold improvements and the corporate donations for leasehold improvements.

Required:

Prepare a statement of financial position for the society at December 31, Year 5. Show your supporting calculations and state your assumptions. (You can use an assumed number for excess of revenue over expenses to balance your statement of financial position.)