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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
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 $ 119,3ee 41,800 $ 4,900 3,680 186, ese 218,000 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 124,00 21,320 197, 380 51,380 148,000 349,620 38,900 10,080 30, eee 30, eee 289, 210 39, 280 7,740 4,990 4,380 2,800 34,00 $ 978,140 $ 978,140 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 $169,314 of cash on hand at the beginning of the year. During the year, the center received cash from contributors: $307,600 that was unrestricted and $38,900 that was restricted for the purchase of equipment for the center. It had $10,000 of Income earned and received on long-term Investments. The center spent cash of $289,210 on salaries and fringe benefits, $30,000 on the purchase of equipment for the center, and $87,304 for operating expenses. Other pertinent Information follows: net pledges receivable Increased $5,000, Inventory Increased $1,800, accounts payable decreased $105,194, and there were no salarles 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 S Cash Pledges Receivable Inventory Investments Furniture and Equipment 119,300 36.000 3,600 186,000 94,000 Total Assets S 439,800 Liabilities Accounts Payable S 21,320 Total Liabilities 21,320 Net Assets Without Donor Restrictions With Donor Restrictions-Programs With Donor Restrictions-Permanent Endowment 60.200 148,000 Total Net Assets 208,200 229.520 Total Liabilities and Net Assets S 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: 0 Net Cash Used for Operating Activities Cash Flows from Investing Activities: Cash Flows from Financing Activities: Proceeds from Contributions Restricted for: 0 Net Increase in Cash Cash, July 1, 2018 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 S 0 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 Fund-Raising and General Total Total Total Expenses os os os os Ols 0 $ 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 Revenues, Gains, and Other Support: S 0 0 0 0 0 0 Total Revenues, Gains, and Other Support Expenses and Losses: Program Services: 0 0 0 0 0 Total Program Expenses Support Expenses: 0 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 0 0 0 0 0 $ 0 S 0
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