The Far North Centre (the Centre) is an antipoverty organization funded by contributions from governments and the general public. For a number of years, it has been run by a small group of permanent employees with the help of part-timers and dedicated volunteers. It owns its premises, which are in the process of being renovated. The funds for this were obtained through a special capital fund campaign carried out last year. Its main program is the daily provision of meals to the needy. It also distributes clothing, most of which is donated. Operating funds come from government grants, interest earned from endowment investments, and a public campaign held in the latter part of each year to raise funds for the needs of the next fiscal year. The Centre maintains its records in accordance with the restricted fund method of accounting for contributions, and prepares its financial statements using an operating fund, a capital fund (for all activities related to capital assets), and an endowment fund. The following are the fund trial balances as at January 1 , Year 6 : The following transactions took place in Year 6: 1. An amount of $38,300 from the endowment fund cash was invested in marketable securities. 2. Office equipment costing $2,600 was purchased with operating fund cash. 3. Invoices totalling $1,680,000 were received for goods and services. These invoices were recorded as accounts payable and were allocated 55% to food program, 20% to clothing program, and 25% to administration. 4. The capital fund grants receivable of $152,000 were collected in full, and the $14,500 in accounts payable was paid. During Year 6 , building renovations costing $369,000 and equipment purchases of $85,500 were made. Of these costs, 90% was paid, with the balance held back and still owing at year-end. 5. Operating fund accounts payable amounting to $2,040,000 and the wages payable and accrued liabilities at the beginning of the year were all paid. 6. All of the operating fund pledges receivables and grants receivable at the beginning of the year were collected in full, including the pledges that were included in the allowance for doubtful accounts. 7. The deferred contribution revenue from the Year 5 fundraising campaign was made up of the following: The Centre runs the campaign with its own people and is fully responsible for all decisions made during the campaign. 8. Government grants for operating purposes totalled $1,341,500, of which $1,215,000 was received during the year, with the balance expected early in Year 7. 9. The total wage costs for the year amounted to $668,500, of which $556,000 was paid and $112,500 is payable at year-end. These costs are to be allocated 40% each to the food and clothing programs, with the balance to administration. 10. The campaign to raise funds for next year's operations was held in December. Cash of $672,000 was collected and pledges of $828,000 were received. It is expected that 5% of these pledges will be uncollectible. Total fundraising costs were $354,000, of which $104,000 is still owed to suppliers. 11. An endowment contribution of $14,500 cash was received. In addition, the investments in the endowment fund earned $35,600 in interest. 12. The annual depreciation on the buildings and equipment amounted to $135,000. Required: (a) Prepare the journal entries necessary to reflect the Year 6 events. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Note: Enter debits before credits. (b) For each fund, prepare a Year 6 statement of financial position and statement of operations and changes in fund balance. (Input all amounts as positive values. Omit $ sign in your response.) (c) What percentage of Year 6 revenues of the operating fund were spent on program costs and what percentage was spent on administration and fundraising? (Round your answers to 1 decimal place. Omit % sign in your response.) The Far North Centre (the Centre) is an antipoverty organization funded by contributions from governments and the general public. For a number of years, it has been run by a small group of permanent employees with the help of part-timers and dedicated volunteers. It owns its premises, which are in the process of being renovated. The funds for this were obtained through a special capital fund campaign carried out last year. Its main program is the daily provision of meals to the needy. It also distributes clothing, most of which is donated. Operating funds come from government grants, interest earned from endowment investments, and a public campaign held in the latter part of each year to raise funds for the needs of the next fiscal year. The Centre maintains its records in accordance with the restricted fund method of accounting for contributions, and prepares its financial statements using an operating fund, a capital fund (for all activities related to capital assets), and an endowment fund. The following are the fund trial balances as at January 1 , Year 6 : The following transactions took place in Year 6: 1. An amount of $38,300 from the endowment fund cash was invested in marketable securities. 2. Office equipment costing $2,600 was purchased with operating fund cash. 3. Invoices totalling $1,680,000 were received for goods and services. These invoices were recorded as accounts payable and were allocated 55% to food program, 20% to clothing program, and 25% to administration. 4. The capital fund grants receivable of $152,000 were collected in full, and the $14,500 in accounts payable was paid. During Year 6 , building renovations costing $369,000 and equipment purchases of $85,500 were made. Of these costs, 90% was paid, with the balance held back and still owing at year-end. 5. Operating fund accounts payable amounting to $2,040,000 and the wages payable and accrued liabilities at the beginning of the year were all paid. 6. All of the operating fund pledges receivables and grants receivable at the beginning of the year were collected in full, including the pledges that were included in the allowance for doubtful accounts. 7. The deferred contribution revenue from the Year 5 fundraising campaign was made up of the following: The Centre runs the campaign with its own people and is fully responsible for all decisions made during the campaign. 8. Government grants for operating purposes totalled $1,341,500, of which $1,215,000 was received during the year, with the balance expected early in Year 7. 9. The total wage costs for the year amounted to $668,500, of which $556,000 was paid and $112,500 is payable at year-end. These costs are to be allocated 40% each to the food and clothing programs, with the balance to administration. 10. The campaign to raise funds for next year's operations was held in December. Cash of $672,000 was collected and pledges of $828,000 were received. It is expected that 5% of these pledges will be uncollectible. Total fundraising costs were $354,000, of which $104,000 is still owed to suppliers. 11. An endowment contribution of $14,500 cash was received. In addition, the investments in the endowment fund earned $35,600 in interest. 12. The annual depreciation on the buildings and equipment amounted to $135,000. Required: (a) Prepare the journal entries necessary to reflect the Year 6 events. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Journal entry worksheet Note: Enter debits before credits. (b) For each fund, prepare a Year 6 statement of financial position and statement of operations and changes in fund balance. (Input all amounts as positive values. Omit $ sign in your response.) (c) What percentage of Year 6 revenues of the operating fund were spent on program costs and what percentage was spent on administration and fundraising? (Round your answers to 1 decimal place. Omit % sign in your response.)