Show $me$ the steps $to$ solve:

$On$ January $1,20X2,$ Marcus Brody, a local college professor and philanthropist, started the Lost Ark Foundation, a not$-$for$-$profit institute designed $to$ help retired adventurers adjust $to$ normal life once their treasure$-$hunting days are over.

During the year, the following transactions took place:

$*On$ January $1,$ Marcus Brody donated land with $an$ old building with a market value

$of$ $$725,000,$ furniture with a value $of$ $$25,000,$ and cash $of$ $$500,000.Mr.$ Brody

placed $no$ special restrictions $on$ the use $of$ these assets. The fair value $of$ the land

alone was determined $tobe$ $$400,000.$ The building required extensive

refurbishment.

$*On$ February $23,$ the Foundation received a donation $of$ $$415,000.No$ restrictions

were placed $on$ this donation.

$*On$ March $1,$ the Foundation began a month$-$long fund$-$raising drive $to$ collect

contributions for refurbishment $of$ the building. All donations received from the

fund$-$raising campaign were designated for use $in$ refurbishing the building. During

March, a total $of$ $$425,000$ was collected.

$*$ The total costs $to$ refurbish the building amounted $to$ $$600,000.In$ addition $to$ the

donations raised from the fund$-$raising drive, the Foundation used cash from the

unrestricted donations for this purpose. The building was ready for operations $by$

the end $of$ June.

$*On$ May $15,$ the Foundation received $$1,000,000$ from the estate $ofMr.J.$ Bond.

$In$ his will, $Mr.$ Bond indicated that the donation was not $tobe$ used for the day$-to-$

day activities $of$ the Foundation but was $tobe$ invested $in$ government bonds. The

interest earned from the bonds could $be$ used $as$ the Foundation chose.

Accordingly, the Foundation established $an$ endowment fund for this contribution

and invested the cash received $in$ government bonds.

$*$ Interest earned for the year ending December $31on$ the government bonds

amounted $to$ $$18,000.$

$*$ During the year ending December $31,$ Lost Ark paid the following amounts $in$ cash:

$$24,000$ Office supplies $($$$6,000$ worth remain unused $at$ year$-$end$)$

$$15,000$ Utilities $(the$ bill for December, $$1,600$ remained unpaid$)$

$$72,000$ Salaries for Foundation workers $($$$10,000$ remained unpaid $at$ the

end $of$ the year$)$

$*$ The building $is$ estimated $to$ have a remaining useful life $of20$ years, whereas the

furniture $is$ expected $to$ last another $5$ years. $No$ residual value $is$ expected for

either asset.

REQUIRED:

Assume that the Foundation uses the restricted fund method for revenue

recognition and creates appropriate funds for restricted and endowment

contributions $in$ addition $to$ a general fund.

$i.$ Prepare journal entries $to$ record the transactions and events described above.

Indicate $in$ which fund the entry should $be$ recorded.

$ii.$ Prepare a statement $of$ operations $in$ good format for the Lost Ark Foundation for

the year ended December $31,20X2.$

iii. Prepare a statement $of$ financial position $in$ good format for the Lost Ark Foundation $asat$ December $31,20X2.$