The Meals for the Homeless is aprivate, not-for-profit organization that provides free meals forthe destitute in a large city. The following transactions tookplace in the accounts of Meals for the Homeless during 2020.
1. Restricted Cashgifts of $80,000 that were received last year (in cash) were spent on food (thisyear) in 2020.
2. UnrestrictedCash of $200,000 was received as a donation in 2020.
Additional Information: The January 1,2020 balances from the Statement of Financial Position (balancesheet) were as follows:
a) Cash $700,000(debit)
b) Net AssetsUnrestricted By Donor $500,000 (credit)
c) Net AssetsRestricted By Donor $200,000 (credit)
Required:
A) Record the twotransactions above in journal entry form.
B) Prepare a Statement ofActivities for the year 2020.
C) Prepare a Statement ofChanges in Net Assets for 2020.
D) Prepare a Statement ofFinancial Position (balance sheet) as of December 31, 2020.
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