All facts about this NFPO are identical to those described in Problem 9, except that the Centre wants to use the restricted fund method of accounting for contributions. The Centre will use two separate funds–operating and capital. The capital fund will capture contributions pertaining to property, building and equipment.

Required

(a) Prepare the journal entry to record the pledge by the provincial government towards the purchase of land, if applicable and indicate the fund in which the journal entry would be recorded.

(b) Prepare a statement of operations for the Fairchild Centre for each of the two funds for the year ended December 31, Year 5. Show your supporting calculations and state your assumptions.

(c) Prepare a statement of changes in net assets for the Fairchild Centre for each of the two funds for the year ended December 31, Year 5.