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. Debits Credits $ 116,600 Cash Pledges Receivable-Without Donor Restrictions Estimated Uncollectible Pledges 42,100 5,200 3,900 189,000 221,000 Inventory Investments Furniture and Equipment Accumulated Depreciation-Furniture and Equipment Accounts Payable 125,500 21,620 197,600 51,600 151,000 349,920 39,200 10,300 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 Restriction s-Programs Investment Income-Without Donor Restrictions Net Assets Released from Restrictions-With Donor Restrictions 33,000 Net Assets Released from Restrictions-Without Donor Restrictions 33,000 Salaries and Fringe Benefit Expense Occupancy and Utility Expense Supplies Expense Printing and Publishing Expense Telephone and Postage Expense Unrealized Gain on Investments 289,510 39,500 8,040 5,290 4,600 3,100 Depreciation Expense 35,500 988,040 988,040 Totals 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. ! Required information Statement of Financial Position June 30, 2020 Assets Total Assets 0 Liabilities Total Liabilities 0 Net Assets Total Net Assets 0 Total Liabilities and Net Assets $ 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 Supporting Services All Services Counseling Services Community Services Professional Management and General Fund-Raising Total Total Total Training $ $ $ $ $ $ Total Expenses 0 0 0 10 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 With Donor Total Restrictions Restrictions Revenues, Gains, and Other Support Total Revenues, Gains, and Other Support Expenses and Losses: Program Services Total Program Expenses Support Expenses.. Revenues, Gains, and Other Support Total Revenues, Gains, and Other Support Expenses and Losses Program Services Total Program Expenses Support Expenses Total Support Expenses Total Expenses and Losses Change in Net Assets Net Assets, July 1, 2019 Net Assets, June 30, 2020 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 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 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. Debits Credits $ 116,600 Cash Pledges Receivable-Without Donor Restrictions Estimated Uncollectible Pledges 42,100 5,200 3,900 189,000 221,000 Inventory Investments Furniture and Equipment Accumulated Depreciation-Furniture and Equipment Accounts Payable 125,500 21,620 197,600 51,600 151,000 349,920 39,200 10,300 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 Restriction s-Programs Investment Income-Without Donor Restrictions Net Assets Released from Restrictions-With Donor Restrictions 33,000 Net Assets Released from Restrictions-Without Donor Restrictions 33,000 Salaries and Fringe Benefit Expense Occupancy and Utility Expense Supplies Expense Printing and Publishing Expense Telephone and Postage Expense Unrealized Gain on Investments 289,510 39,500 8,040 5,290 4,600 3,100 Depreciation Expense 35,500 988,040 988,040 Totals 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. ! Required information Statement of Financial Position June 30, 2020 Assets Total Assets 0 Liabilities Total Liabilities 0 Net Assets Total Net Assets 0 Total Liabilities and Net Assets $ 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 Supporting Services All Services Counseling Services Community Services Professional Management and General Fund-Raising Total Total Total Training $ $ $ $ $ $ Total Expenses 0 0 0 10 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 With Donor Total Restrictions Restrictions Revenues, Gains, and Other Support Total Revenues, Gains, and Other Support Expenses and Losses: Program Services Total Program Expenses Support Expenses.. Revenues, Gains, and Other Support Total Revenues, Gains, and Other Support Expenses and Losses Program Services Total Program Expenses Support Expenses Total Support Expenses Total Expenses and Losses Change in Net Assets Net Assets, July 1, 2019 Net Assets, June 30, 2020 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 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