! Required information [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 $ 117,500 42,000 $ 5,100 3,800 188,000 220,000 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 125,000 21,520 197,500 51,500 150,000 349,820 39,100 10,200 32,000 32,000 289, 410 39,400 7,940 5,190 4,500 3,000 35,000 $ 984,740 $ 984,740 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. 2. The organization had $170,314 of cash on hand at the beginning of the year. During the year, the center received cash from contributors: $306,800 that was unrestricted and $39,100 that was restricted for the purchase of equipment for the center. It had $10,200 of income earned and received on long-term investments. The center spent cash of $289,410 on salaries and fringe benefits, $32,000 on the purchase of equipment for the center, and $87,504 for operating expenses. Other pertinent information follows: net pledges receivable increased $4,800, inventory increased $2,000, accounts payable decreased $105,794, 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. KARE COUNSELING CENTER Statement of Financial Position June 30, 2020 Assets $ Cash Pledges Receivable Inventory Investments Furniture and Equipment 117,500 36,900 3,800 188,000 95,000 Total Assets $ 441,200 Liabilities Accounts Payable $ 21,520 Total Liabilities 21,520 Net Assets Without Donor Restrictions With Donor RestrictionsPrograms With Donor RestrictionsPermanent Endowment Total Net Assets 0 Total Liabilities and Net Assets $ 21,520
