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 induting martial and family counting and treatment for alcoholism and drug abuse. The center's initial resources were provided by a private foundation in the form of a $2.500.000 capital grant of this sun, the foundation designated 51,000,000 for building and equipment and $750,000 for the establishment of a special program for counseling paroles. The following transactions occurred during 2020 1. Contributions of 51.200.000 were received through the local United Way campaign and an addition 5200,000 was received in direct contributions of the direct contributo 120.000 was for the parolees' program and 550,000 was for the building fund the remaining $130,000, of which 30.000 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 contributions expected to be received within one year are reported at travail en estrated uncollectibles netted against restricted contribution revenue 2. Out of pocket operating expenses for the year were $1.400.000. Of the total, 3950,000 are program expenses, $350.000 are administrative expenses, and the remainder are un corona expenses $100,000 of the expenses were unpaid a year-end 3 The special paroles program had not yet begun as of December 31, 2020. Al resources dedicated to this program were invested in short term securities, investment income for the year. which was reinvested, was 530,000. There are no unreared gains or losses on the securities 4. The center obtained a $2.400.000 mortgage to purchase a building and obtained a $300,000 3 your note to purchase it. The center also used the desired capital gatto in these purchases the total cost of the building and equipment was 53.700.000 5. Interest of $100,000 was accrued and paid on the mortgage and not allocated to administrative expense 6 Depreciation on the building and equipment is 5190.000,all allocated to program expenses Ref. Debit Credit X 0 0 0 X 1. > X 0 50,000 60,000 0 0 . X 0 X 07 X 0 2. 0 0 General Journal Description Restricted cash Cash Contributions revenue - use restricted Contributions revenue - unrestricted To record receipt of initial resources provided by a private foundation. Cash Restricted cash Contributions receivable Allowance for uncollectibles Contributions revenue -unrestricted Contributions revenue - use restricted Contributions revenue-time restricted Program expenses Administrative expenses Fund-raising expenses Accounts payable Cash Investments Cash Investment income-unrestricted 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. Administrative expenses Cash Program expenses Building and equipment, net 950,000 350,000 100,000 0 0 100,000 1,300,000 0 0 3. X 0 X > 0 4. X . > 3,700,000 0 O 300,000 1,000,000 2,400,000 . 0 5. - 0 . 6. 140,000 0 190,000 0 > 140,000 0 190,000 > x x 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 5 X5 Contributions Grant Contributions-Parolee program 0 Contributions-Building fund 0 Investment income Net assets released from restrictions Total revenues gains and other support Expenses Program expenses 0 Administrative expenses 100000 Fundraising expenses 0 Total expenses Change in net assets 0 0 Net assets, January 1, 2020 $ Net assets, December 31, 2020 X X O . X x X X x 0 x 0 X X X x XXX Southside Counseling Center Statement of Financial Position December 31, 2020 Assets Cash $ Contributions receivable, net Investments Restricted cash Building and equipment, net X Total assets $ X Liabilities and net assets Liabilities: Accounts payable 100000 Note payable 300000 Mortgage payable 2400000 2800000 Net assets: Without donor restrictions X With donor restrictions $ Total liabilities and net assets $ X