Luv Pets (LP)is a NFP That Operates an Animal Shelter

Essay

Luv Pets (LP)is a NFP that operates an animal shelter and commenced operations in 2013. LP has a December 31 year end. In 2013, the organization received $1.5 million to build a new shelter which was completed in October 2013. The shelter is expected to have a useful life of 40 years. This was financed with $800,000 of private donations and $700,000 of government grants. In addition, $150,000 was provided in government grants on October 1, 2013 to fund two veterinarians for the next twelve months. Two veterinarians were hired October 1, 2013 at an annual salary of $120,000 each. The organization is expected to generate $1,250,000 in annual revenues. During the period October 1 to December 31, LP received donations of $275,000 and paid out operating expenses of $235,000.
Required:
Prepare a partial statement of financial position to capture the above transactions occurring during 2013. LP uses the deferral method and does not have a separate capital fund.