Prepare Financial Statements. The Children€™s Counseling Center was incorporated as a not-for-profit voluntary health and welfare organization 10 years ago. Its adjusted trial balance as of June 30, 2011, follows.

1. Salaries and fringe benefits were allocated to program services and supporting services in the following percentages: counseling services, 40%; professional training, 15%; community service, 10%; management and general, 25%; and fund-raising, 10%. Occupancy and utility, supplies, printing and publishing, and telephone and postage expense were allocated to the programs in the same manner as salaries and fringe benefits. Depreciation expense was divided equally among all five functional expense categories. Unrealized loss on investments was charged to the management and general function.
2. The organization had $153,314 of cash on hand at the beginning of the year. During the year, the center received cash from contributors: $310,800 that was unrestricted and $48,100 that was restricted for the purchase of equipment for the center. It had $9,200 of income earned and received on long-term investments. The center spent cash of $286,410 on salaries and fringe benefits, $22,000 on the purchase of equipment for the center, and $86,504 for operating expenses. Other pertinent information follows: net pledges receivable increased $6.000, inventory increased $1,000, accounts payable decreased $102,594, and there were no salaries payable at the beginning of the year.
Required
a. Prepare a statement of financial position as of June 30, 2011, following the format in Illustration 14€”7.
b. Prepare a statement of functional expenses for the year ended June 30, 2011, following the format in Illustration 14€”10.
c. Prepare a statement of activities for the year ended June 30, 2011, following the format in Illustration 14-8.
d. Prepare a statement of cash flows for the year ended June 30, 2011, following the format in Illustration14€”9.

Transcribed Image Text:

Debits Credits Cash $126,500 Pledges Receivable Unrestricted Estimated Uncollectible Pledges 41,000 $ 4,100 Inventory 2,800 Investments 178,000 Furniture and Equipment Accumulated Depreciation-Furniture and Equipment Accounts Payable Unrestricted Net Assets 210,000 160,000 13,520 196,500 Temporarily Restricted Net Assets Permanently Restricted Net Assets 50,500 100,000 Contributions-Unrestricted 338,820 Contributions-Temporarily Restricted Investment Income Unrestricted 48,100 9,200 Net Assets Released from Restrictions- Temporarily Restricted 22,000 Net Assets Released from Restrictions- Unrestricted 22,000 Salaries and Fringe Benefit Expense Occupancy and Utility Expense Supplies Expense Printing and Publishing Expense Telephone and Postage Expense 286,410 38,400 6,940 4,190 3,500 Unrealized Loss on investments 2,000 Depreciation Expense 21,000 Totals $942,740 $942,740