Journal EntriesFinancial StatementsLibrary Preston Library, a nonprofit organization, presented the following statement of financial position and

Journal Entries—Financial Statements—LibraryPreston Library, a nonprofit organization, presented the following statement of financialposition and statement of activities for its fiscal year ended February 28, 2007.Preston LibraryStatement of Financial PositionFebruary 28, 2007TemporarilyAssets Unrestricted RestrictedCurrent AssetsCash $ 285,000 $80,000Grants Receivable 80,000Prepaid Expenses 65,000Total 430,000Investments (at market) 1,020,000Land, Building, and Equipment(less accumulated depreciation of $50,000) 530,000Total Assets $1,980,000 $80,000Liabilities and Fund BalancesCurrent LiabilitiesAccounts Payable and Accrued Expenses $ 150,000Total 150,000Long-Term Debt 200,000Fund Balances 1,630,000 80,000Total Liabilities and Fund Balances $1,980,000 $80,000LO2962Problems 925Preston LibraryStatement of Activitiesfor Year Ended February 28, 2007TemporarilySupport and Revenue Unrestricted RestrictedSupportGrants $ 70,000 $—0—Gifts 300,000 80,000Total 370,000 80,000RevenueService Fees 22,000Book Rentals and Fines 107,000Investment Income 71,000Total 200,000 —0—Total Support and Revenue $ 570,000 $80,000ExpensesProgram ServicesCirculating library $ 212,000Research library 86,000Exhibits 20,000Community services 10,000Total 328,000 —0—Supporting ServicesGeneral and administrative 175,000Fund raising 111,000Total 286,000 —0—Total Expenses 614,000 —0—Increase (decrease) in net assets (44,000) 80,000Fund Balances—beginning of year 1,674,000 —0—Fund Balances—end of year $1,630,000 $80,000The following transactions occurred during the fiscal year ended February 28, 2008.1. Fees were billed as follows:Service fees $30,000Book rentals 43,000Book fines 78,0002. $40,000 of the Grant Receivable was received. Another grant in the amount of $20,000was promised.3. Contributions in the amounts summarized below were received:Unrestricted $215,000Restricted 108,0004. Investment income totaled $75,000 for the year.5. Vouchers for the year were approved as follows:Circulating library $189,000Research library 74,000Exhibits 15,000Community services 12,000General and administrative 166,000Fund raising 103,000Total $559,0006. During the year, $500,000 worth of vouchers were paid.963