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Please complete the following using the information provided. (The following information applies to the questions displayed below.] The Kare Counseling Center was incorporated as a
Please complete the following using the information provided.
(The following information applies to the questions displayed below.] The Kare 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, 2020, follows. Credits Debits $116,600 42,100 $ 5,200 3,900 189,000 221,000 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 Gain on Investments Depreciation Expense Totals 125,500 21,620 197,600 51,600 151,000 349,920 39,200 10,300 33,000 33,000 289,510 39,500 8,040 5,290 4,600 3,100 35,500 $988, 040 $988,040 1. Salaries and fringe benefits were allocated to program services and supporting services in the following percentages: counseling services, 30 percent; professional training, 20 percent, community service, 10 percent; management and general, 20 percent; and fund-raising, 20 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 $170,814 of cash on hand at the beginning of the year. During the year, the center received cash from contributors: $306,400 that was unrestricted and $39,200 that was restricted for the purchase of equipment for the center. It had $10,300 of income earned and received on long-term investments. The center spent cash of $289,510 on salaries and fringe benefits, $33,000 on the purchase of equipment for the center, and $87,604 for operating expenses. Other pertinent information follows: net pledges receivable increased $4,700, inventory increased $2,100, accounts payable decreased $106,094, and there were no salaries payable at the beginning of the year. a. Prepare a statement of financial position as of June 30, 2020. KARE COUNSELING CENTER Statement of Financial Position June 30, 2020 Assets $ Cash Pledges Receivable inventory Investments Furniture and Equipment 116,600 36,900 3,900 189,000 95,500 Total Assets $ 441,900 Liabilities Accounts Payable $ 21,620 21,620 Total Liabilities Net Assets Without Donor Restrictions With Donor Restrictions Programs With Donor Restrictions-Permanent Endowment 151,000 Total Net Assets Total Liabilities and Net Assets 151,000 172,620 $ b. Prepare a statement of expenses by nature and function for the year ended June 30, 2020. KARE COUNSELING CENTER Statement of Expenses by Nature and Function Year Ended June 30, 2020 Program Services Counseling Professional Community Total Services Training Services All Services Supporting Services Management and General Fund-Raising Total Total $ 289,510 Salaries and Fringe Benefit Expense Occupancy and Utility Expense Supplies Expense Printing and Publishing Expense Telephone and Postage Expense Depreciation Expense Total Expenses $ os 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 289,510 c. Prepare a statement of activities for the year ended June 30, 2020. (Amounts to be deducted should be indicated with a minus sign.) KARE COUNSELING CENTER Statement of Activities Year Ended June 30, 2020 Without Donor Restrictions With Donor Restrictions Total S 39,200 S Revenues, Gains, and Other Support: Contributions Unrealized Gain on Investments Investment Income Net Assets With Donor Restrictions Released from Restrictions 349,920 s 3,100 10,300 33,000 389,120 3,100 10,300 (33,000) 0 0 396,320 6,200 402.520 Total Revenues, Gains, and Other Support Expenses and Losses: Program Services: Counseling Services Professional Training Community Service 0 0 0 0 0 0 Total Program Expenses Support Expenses: Management and General Fund-Raising 0 0 0 0 0 0 0 0 Total Support Expenses Total Expenses and Losses Change in Net Assets Net Assets, July 1, 2019 Net Assets, June 30, 2020 396,320 6,200 402.520 0 S 396,320 $ 6,200 S 402.520 d. Prepare a statement of cash flows for the year ended June 30, 2020. (List of cash outflows should be indicated by a minus sign.) KARE COUNSELING CENTER Statement of Cash Flows Year Ended June 30, 2020 Cash Flows from Operating Activities: Net Cash Used for Operating Activities Cash Flows from Investing Activities: Cash Flows from Financing Activities: Proceeds from Contributions Restricted for: Net Increase in Cash Cash, July 1, 2019 Cash, June 30, 2020 Reconciliation of Changes in Net Assets to Net Cash Used for Operating Activities Adjustments to Reconcile Changes in Net Assets to Net Cash Provided by Operating Activities: Net Cash Used for Operating Activities (The following information applies to the questions displayed below.] The Kare 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, 2020, follows. Credits Debits $116,600 42,100 $ 5,200 3,900 189,000 221,000 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 Gain on Investments Depreciation Expense Totals 125,500 21,620 197,600 51,600 151,000 349,920 39,200 10,300 33,000 33,000 289,510 39,500 8,040 5,290 4,600 3,100 35,500 $988, 040 $988,040 1. Salaries and fringe benefits were allocated to program services and supporting services in the following percentages: counseling services, 30 percent; professional training, 20 percent, community service, 10 percent; management and general, 20 percent; and fund-raising, 20 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 $170,814 of cash on hand at the beginning of the year. During the year, the center received cash from contributors: $306,400 that was unrestricted and $39,200 that was restricted for the purchase of equipment for the center. It had $10,300 of income earned and received on long-term investments. The center spent cash of $289,510 on salaries and fringe benefits, $33,000 on the purchase of equipment for the center, and $87,604 for operating expenses. Other pertinent information follows: net pledges receivable increased $4,700, inventory increased $2,100, accounts payable decreased $106,094, and there were no salaries payable at the beginning of the year. a. Prepare a statement of financial position as of June 30, 2020. KARE COUNSELING CENTER Statement of Financial Position June 30, 2020 Assets $ Cash Pledges Receivable inventory Investments Furniture and Equipment 116,600 36,900 3,900 189,000 95,500 Total Assets $ 441,900 Liabilities Accounts Payable $ 21,620 21,620 Total Liabilities Net Assets Without Donor Restrictions With Donor Restrictions Programs With Donor Restrictions-Permanent Endowment 151,000 Total Net Assets Total Liabilities and Net Assets 151,000 172,620 $ b. Prepare a statement of expenses by nature and function for the year ended June 30, 2020. KARE COUNSELING CENTER Statement of Expenses by Nature and Function Year Ended June 30, 2020 Program Services Counseling Professional Community Total Services Training Services All Services Supporting Services Management and General Fund-Raising Total Total $ 289,510 Salaries and Fringe Benefit Expense Occupancy and Utility Expense Supplies Expense Printing and Publishing Expense Telephone and Postage Expense Depreciation Expense Total Expenses $ os 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 289,510 c. Prepare a statement of activities for the year ended June 30, 2020. (Amounts to be deducted should be indicated with a minus sign.) KARE COUNSELING CENTER Statement of Activities Year Ended June 30, 2020 Without Donor Restrictions With Donor Restrictions Total S 39,200 S Revenues, Gains, and Other Support: Contributions Unrealized Gain on Investments Investment Income Net Assets With Donor Restrictions Released from Restrictions 349,920 s 3,100 10,300 33,000 389,120 3,100 10,300 (33,000) 0 0 396,320 6,200 402.520 Total Revenues, Gains, and Other Support Expenses and Losses: Program Services: Counseling Services Professional Training Community Service 0 0 0 0 0 0 Total Program Expenses Support Expenses: Management and General Fund-Raising 0 0 0 0 0 0 0 0 Total Support Expenses Total Expenses and Losses Change in Net Assets Net Assets, July 1, 2019 Net Assets, June 30, 2020 396,320 6,200 402.520 0 S 396,320 $ 6,200 S 402.520 d. Prepare a statement of cash flows for the year ended June 30, 2020. (List of cash outflows should be indicated by a minus sign.) KARE COUNSELING CENTER Statement of Cash Flows Year Ended June 30, 2020 Cash Flows from Operating Activities: Net Cash Used for Operating Activities Cash Flows from Investing Activities: Cash Flows from Financing Activities: Proceeds from Contributions Restricted for: Net Increase in Cash Cash, July 1, 2019 Cash, June 30, 2020 Reconciliation of Changes in Net Assets to Net Cash Used for Operating Activities Adjustments to Reconcile Changes in Net Assets to Net Cash Provided by Operating Activities: Net Cash Used for Operating ActivitiesStep by Step Solution
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