14-25.Prepare Financial Statements. (LO14-5) The Kare Counseling Center was incorporated as a not-for-profit organization 10 years ago. Its adjusted trial balance as of June 30, 2020, follows. Debits Credits $126,500 41,000 Cash Pledges Recelvable-Without Donor Restrictions Estimated Uncollectible Pledges Inventory $ 4,100 2,800 178,000 210,000 Furniture and Equipment Accounts Payable Net Assets Without Donor Restrictions Net Assets With Donor Restrictions-Programs Net Assets With Donor Restrictions-Permanent Endowment 120,000 20,520 196,500 50,500 140,000 348,820 38,100 Donor Restrictions Restrictions 22000 9.200 22,000 Investment Income-Without Donor Restrictions Net Assets Released from Restrictions-With Donor Restrictions Net Assets Released from Salaries and Fringe Benefit Expense Occupancy and Utility Expense Supplies Expense Printing and Publishing Expense Telephone and Postage Expense Unrealized Gain on Investments Depreciation Expense 288,410 38,400 6,940 4,190 3,500 2,000 Totals 951,740 951.740 1. Salaries and fringe benefits were allocated to program services and supporting services in the following percentages: counseling services, 40 percent professional training. 20 percent; community service, 10 percent; management and general, 20 percent; and fund-raising, 10 percent. Occupancy and utility, supplies, printing and publishing, and telephone and postage expenses 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. Page 612 2. The organization had $165,314 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 S38,100 that was restricted for the purchase of equipment for the center. It had $9,200 of income eamed and received on long-term investments. The center spent cash of S288,410 on salaries and fringe benefits, $22,000 on the purchase of equipment for the center, and S86,504 for operating expenses. Other pertinent information follows: net pledges receivable increased S6,000, 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, 2020, following the format in b. Prepare a statement of expenses by nature and function for the year ended June 30, 2020 following the format in Ilustration 14-8 c. Prepare a statement of activities for the year ended June 30, 2020, following the format in