The Rift Valley Minor Hockey Association Was Established in the Village

The Rift Valley Minor Hockey Association was established in the village of Rift Valley in early 2015. It was established to promote hockey in the village and surrounding territory. With the support of the provincial government, local business people and many individuals, the association raised sufficient funds to build an indoor hockey arena and also established an endowment fund to cover maintenance costs. The association is required by the provincial government to prepare financial statements in accordance with generally accepted accounting principles.
The board has decided that its year end will be June 30 and that capital assets will be capitalized and amortized over their expected useful lives. They have decided not to use the restricted fund method of accounting but will account for restricted donations using the deferred contribution method of accounting. The first set of financial statements will cover the eighteen month period from the establishment of the association to June 30, 2016.
From the bank statements, you determine the following: $\begin{array}{|l|l|l|}\hline\text { Cash receipts: }\\\hline \text { Government grant for operating purposes } & \$ 60,000 & \\\hline \text { Government grant for construction of the arena } & 400,000 & \\\hline \text { Corporate donations for the construction of the arena } & 520,000 & \\\hline \text { Minor hockey player registration fees } & 70,000 & \\\hline \text { Endowment fund contributions } & 100,000 & \\\hline \text { Ice rental and concession revenue } & 90,000 & \\\hline \text { Interest income rec eived } & 6,000 & \$ 1,246,000 \\\hline\\\hline\text { Payments: }\\\hline \text { Cost of construction of arena } & \$ 920,000 & \\\hline \text { Operating expenses - minor hockey program } & 90,000 & \\\hline \text { Purchases of inventory for the concession } & 60,000 & \\\hline \text { Other operating costs } & 50,000 & \\\hline \text { Investment of endowment fund contributions } & 100,000 & \\\hline \text { Maintenance costs } & 3,000 & 1,223,000 \\\hline & & \\\hline \text { Bank balance, June } 30,2016 & & \$ 23,000 \\\hline\end{array}$ Additional information:
1. The new arena was completed and officially opened on Canada Day (July 1) of 2015. It has an estimated forty year life with no residual value.
2. A long-term resident of Rift Valley donated the land upon which the arena was constructed. The land was valued at $120,000 and the association issued a receipt in that amount. Another resident donated ice-making and ice-cleaning equipment to the association. The equipment has an estimated useful life of six years and no residual value and was estimated to have a value of $66,000 when donated.
3. The endowment contribution was received at the opening celebration and was invested for one year at 5% interest. The terms of the endowment were that the income earned from its investment could be used only for maintenance costs for the arena. $3,000 of such costs were incurred and paid for in May 2016. (The other $1,000 in interest income was earned on the balances in the bank account.)
4. The government had agreed to provide funding of $10,000 per month for the eight months of the minor hockey season (September 1 to April 30 each year). The amount was payable at $7,500 per month during the season and the final $20,000 upon submission of the annual financial statements to the government.
5. Registration fees for minor hockey players cover the season from September to April. $10,000 of the fees received were payments in advance for the 2016-2017 season.
6. An inventory count was taken at the concession stand at the end of June 2016 and the inventory on hand was valued at $6,000 (lower of cost or realizable value). The concession stand sold snacks and drinks during minor hockey games and other events.
7. At June 30, 2016, unpaid invoices were $3,000 for concession purchases, $2,000 for hockey clinics held and $1,000 for miscellaneous other costs.
-Prepare a statement of financial position for the Rift Valley Minor Hockey Association as at June 30, 2016.