Journal Entries and Financial Statements The Southside Counseling Center was established on January 10, 2020, to provide a variety of counseling services to community residents, including marital and family counseling and treatment to alcoholism and drug abuse. The center's initial resources were provided by a private foundation in the formata $2.500.000 capital grant of this sum, the foundation designated 51.000.000 for building and equipment and 5750,000 for the establishment of a special program for counseling paroles. The following transactions occurred during 2020 1. Contributions of $1,200.000 were received through the local United Way campaignand an additional $200,000 was received in direct contributions of the direct contributions, 520.000 for the paroles program and $50,000 was for the building fund; the remaining $130,000, of which $60.000 was in the form of documented pledges expected to be collected within one year unrestricted. The pledges are estimated to be 85% collectible. End-of-year contributionis expected to be received within one year are reported at niet realizable valut, with stimated uncollectibles netted against restricted contribution revenue 2. Out of pocket operating expenses for the year were 51,400.000, of the total 5950,000 are program expenses, 5750.000 are administrative expenses, and the remaindetare rondraning expenses $100,000 of the expenses were unpaid at year-end 3. The special paroles program had not yet begun as of December 31, 2020. Al usources dedicated to this program were invested in short term securities. Westment income for the year. which was reinvested, was $30,000. There are no unrealized yains or losses on the securities 4. The center obtained a 12,400,000 mortgage to purchase a building and obtained a $300,000 year note to purchase equpment. The center also used the designated capital ant tornance these purchases the total cost of the building and equipment was 53,700.000 5. Interest of 5140.000 was accrued and paid on the mortgage and note all allocated to administrative expense 6. Depreciation on the building and equipment is $190.000, all allocated to program expenses Debit 0 x Credit 0 0 x 0 OX 0 0 OX 0 x 0 0 50,000 60,000 0 0 OX 0 OX 0 0 0 x . > 0 0 a. Prepare journal entries to record the transactions for 2020. General Journal Ref. Description Restricted cash Cash Contributions revenue - use restricted Contributions revenue - unrestricted To record receipt of initial resources provided by a private foundation. 1. Cash Restricted cash Contributions receivable Allowance for uncollectibles Contributions revenue-unrestricted Contributions revenue - use restricted Contributions revenue-time restricted 2. Program expenses Administrative expenses Fund-raising expenses Accounts payable Cash 3. Investments Cash Investment income-unrestricted 4 Net assets released from restrictions-restricted Net assets released from restrictions-unrestricted To record reclassification of net assets. Building and equipment, net Note payable Restricted cash Mortgage payable To record purchase of building 5. Administrative expenses Cash 6. Program expenses Building and equipment, net 950,000 350,000 100,000 0 0 0 > > 100,000 1,300,000 0 S OX 0 0 OX OX 0 0 x 0 0 x 4 0 3,700,000 0 0 300,000 1,000,000 2,400,000 . > 0 > 140,000 0 (() D 140,000 0 190,000 190,000 0 . 5 OX b. Prepare Southside's statement of activities for 2020 and its statement of financial position at December 31, 2020, Use a negative sign with an answer for net assets released from restrictions and change in net assets, if appropriate. Otherwise, do not use negative signs Southside Counseling Center Statement of Activities For the Year Ended December 31, 2020 Net Assets Net Assets without Donor With Donor Restrictions Restrictions Revenues, gains, and other support: Contributions General 0 x 5 Contributions Grant Ox O Contributions-Parolee program 0 OX Contributions Building fund 0 OX Investment income OX Net assets released from restrictions Total revenues gains and other support Expenses: Program expenses Administrative expenses 140.000 X 0 Fundraising expenses Total expenses Change in net assets 07 Net assets, January 1, 2020 0X5 OX Net assets, December 31, 2020 O OX OX OX OX O 0 OX OX O OX OX 0 Southside Counseling Center Statement of Financial Position December 31, 2020 Assets Cash $ 0 X Contributions receivable, net 0 X Investments 0 X Restricted cash 0X Building and equipment, net OX Total assets 0 X Liabilities and net assets Liabilities: Accounts payable $ 0 % Note payable Mortgage payable 2,400,000 0X $ TA Net assets: Without donor restrictions With donor restrictions 0 x 0 x OX Total liabilities and net assets $ 0X Journal Entries and Financial Statements The Southside Counseling Center was established on January 10, 2020, to provide a variety of counseling services to community residents, including marital and family counseling and treatment to alcoholism and drug abuse. The center's initial resources were provided by a private foundation in the formata $2.500.000 capital grant of this sum, the foundation designated 51.000.000 for building and equipment and 5750,000 for the establishment of a special program for counseling paroles. The following transactions occurred during 2020 1. Contributions of $1,200.000 were received through the local United Way campaignand an additional $200,000 was received in direct contributions of the direct contributions, 520.000 for the paroles program and $50,000 was for the building fund; the remaining $130,000, of which $60.000 was in the form of documented pledges expected to be collected within one year unrestricted. The pledges are estimated to be 85% collectible. End-of-year contributionis expected to be received within one year are reported at niet realizable valut, with stimated uncollectibles netted against restricted contribution revenue 2. Out of pocket operating expenses for the year were 51,400.000, of the total 5950,000 are program expenses, 5750.000 are administrative expenses, and the remaindetare rondraning expenses $100,000 of the expenses were unpaid at year-end 3. The special paroles program had not yet begun as of December 31, 2020. Al usources dedicated to this program were invested in short term securities. Westment income for the year. which was reinvested, was $30,000. There are no unrealized yains or losses on the securities 4. The center obtained a 12,400,000 mortgage to purchase a building and obtained a $300,000 year note to purchase equpment. The center also used the designated capital ant tornance these purchases the total cost of the building and equipment was 53,700.000 5. Interest of 5140.000 was accrued and paid on the mortgage and note all allocated to administrative expense 6. Depreciation on the building and equipment is $190.000, all allocated to program expenses Debit 0 x Credit 0 0 x 0 OX 0 0 OX 0 x 0 0 50,000 60,000 0 0 OX 0 OX 0 0 0 x . > 0 0 a. Prepare journal entries to record the transactions for 2020. General Journal Ref. Description Restricted cash Cash Contributions revenue - use restricted Contributions revenue - unrestricted To record receipt of initial resources provided by a private foundation. 1. Cash Restricted cash Contributions receivable Allowance for uncollectibles Contributions revenue-unrestricted Contributions revenue - use restricted Contributions revenue-time restricted 2. Program expenses Administrative expenses Fund-raising expenses Accounts payable Cash 3. Investments Cash Investment income-unrestricted 4 Net assets released from restrictions-restricted Net assets released from restrictions-unrestricted To record reclassification of net assets. Building and equipment, net Note payable Restricted cash Mortgage payable To record purchase of building 5. Administrative expenses Cash 6. Program expenses Building and equipment, net 950,000 350,000 100,000 0 0 0 > > 100,000 1,300,000 0 S OX 0 0 OX OX 0 0 x 0 0 x 4 0 3,700,000 0 0 300,000 1,000,000 2,400,000 . > 0 > 140,000 0 (() D 140,000 0 190,000 190,000 0 . 5 OX b. Prepare Southside's statement of activities for 2020 and its statement of financial position at December 31, 2020, Use a negative sign with an answer for net assets released from restrictions and change in net assets, if appropriate. Otherwise, do not use negative signs Southside Counseling Center Statement of Activities For the Year Ended December 31, 2020 Net Assets Net Assets without Donor With Donor Restrictions Restrictions Revenues, gains, and other support: Contributions General 0 x 5 Contributions Grant Ox O Contributions-Parolee program 0 OX Contributions Building fund 0 OX Investment income OX Net assets released from restrictions Total revenues gains and other support Expenses: Program expenses Administrative expenses 140.000 X 0 Fundraising expenses Total expenses Change in net assets 07 Net assets, January 1, 2020 0X5 OX Net assets, December 31, 2020 O OX OX OX OX O 0 OX OX O OX OX 0 Southside Counseling Center Statement of Financial Position December 31, 2020 Assets Cash $ 0 X Contributions receivable, net 0 X Investments 0 X Restricted cash 0X Building and equipment, net OX Total assets 0 X Liabilities and net assets Liabilities: Accounts payable $ 0 % Note payable Mortgage payable 2,400,000 0X $ TA Net assets: Without donor restrictions With donor restrictions 0 x 0 x OX Total liabilities and net assets $ 0X