The Sunwapta Sports Association is an NFPO. It commenced operations on December 1, 2020. Its purpose is to provide sport

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The Sunwapta Sports Association is an NFPO. It commencedoperations on December 1, 2020. Its purpose is to provide sportsactivities, training, transportation, and facilities for childrenand youth in a rural Canadian municipality. It had a small amountof activity during 2020. At December 31, 2020, its statement offinancial position was as follows:
Current Assets
Cash
$7,000
Current Liabilities
Deferred contributions
5,000
Net Assets
Operating fund
2,000
$7,000
The deferred contributions at December 31, 2020 will be used tocover 2021 operating expenses. The following events occurred during2021.
The director has provided a schedule of cash receipts anddisbursements for the year ended December 31, 2021 as follows:
Receipts
Donation – donor A
$2,500,000
Grant – province
225,000
$2,725,000
Expenses
Land and buildings
1,000,000
Salaries and benefits
48,000
Transportation
20,000
1,068,000
Excess of receipts over disbursements
1,657,000
Cash and cash equivalents at start of year
7,000
Cash and cash equivalents at end of year
$1,664,000
Represented by
Cash in bank
$164,000
GICs
1,500,000
$1,664,000
Required:
a. Prepare a statement of operations and statement of changes in netassets for the year ended December 31, 2021 and a statement offinancial position at December 31, 2021. Assume the restricted fundmethod is used and separate funds are maintained for operating,capital, and endowment funds.
b. Repeat the instructions in a., assuming the deferral method and thesame three funds.