Exercise 14-27 (Static) Prepare Financial Statements [LO 14-5] [The following information applies to the questions displayed below) The Kare Counseling Center was incorporated as a not-for-profit organization 10 years ago. Its adjusted trial balance as of June 30, 2023, follows. Cash Pledges Receivable-without Donor Restrictions Estimated Uncollectible Pledges Inventory Investments Furniture and Equipment Accumulated Depreciation-Furniture and Equipment Accounts Payable Net Assets without Donor Restrictions Net Assets with Donor Restrictions-Programs Net Assets with Donor Restrictions-Permanent Endowment Contributions-Without Donor Restrictions Contributions-with Donor Restrictions-Programs Investment Income-without Donor Restrictions Net Assets Released from Restrictions with Donor Restrictions Net Assets Released from Restrictions-without Donor Restrictions Salaries and Fringe Benefit Expense Occupancy and utility Expense Supplies Expense Printing and Publishing Expense Telephone and Postage Expense Unrealized Gein on Investments Depreciation Expense Debits $126,500 Credits 41,000 $ 4,100 2,800 175,000 210,000 120,000 20,520 I 196,500 50,500 140,000 348,820 38,100 9,200 22,000 22,000 288,410 38,400 6,940 4,190 3,500) 2,000 30,000 Check my work Cash Pledges Receivable Without Donor Restrictions Estimated Uncollectible Pledges Inventory Investments Furniture and Equipment Accumulated Depreciation-Furniture and Equipment Accounts Payable Net Assets without Donor Restrictions Net Assets with Donor Restrictions-Programs Net Assets With Donor Restrictions-Permanent Endowment Contributions-Without Donor Restrictions Debits $ 126,500 Credits 41,000 2,800 178,000 210,000 $ 4,100 120,000 20,520 196,500 50,500 140,000 348,828 Contributions-with Donor Restrictions-Programs 38,100 Investment Income-Without Donor Restrictions. 9,200 Net Assets Released from Restrictions-With Donor Restrictions 22,000 Net Assets Released from Restrictions-Without Donor Restrictions 22,000 Salaries and Fringe Benefit Expense 288,410 Occupancy and Utility Expense 38,400 Supplies Expense 6,940 Printing and Publishing Expense 4,190 Telephone and Postage Expense 3,500 Unrealized Gain on Investments 2,000 Depreciation Expense Totals 30,000 $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 my work Occupancy and Utility Expense Supplies Expense Printing and Publishing Expense Telephone and Postage Expense Unrealized Gain on Investments Depreciation Expense Totals 38,400 6,940 4,190 3,500 2,000 30,000 951,740 951,740 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 percerit; 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. 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 $38,100 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 $288,410 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 Exercise 14-27 (Static) Part c c. Prepare a statement of activities for the year ended June 30, 2023 (Amounts to be deducted should be indicated with a minus sign.) Revenues, Gains, and Other Support Total Revenues, Gains, and Other Support Expenses and Losses Program Services: KARE COUNSELING CENTER Statement of Activities Year Ended June 30, 2023 Without Donor Restrictions With Donor Restrictions Jotal $ 0 0 O 0 0 Total Revenues, Gains, and Other Support Expenses and Losses Program Services Total Program Expenses Support Expenses: Total Support Expenses Total Expenses and Losses 0 0 0 0 0 0 0 0 0 0 0 al 0 0 0 0 0 Total Revenues, Gains, and Other Support Expenses and Losses Program Services Total Program Expenses Support Expenses: Total Support Expenses Total Expenses and Losses Change in Net Assets Net Assets, Beginning of year Net Assets, End of year 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 $ 0 $ 0 $ 0 0 0 O