The Kare Counseling Center was incorporated as a not-for-profit organization 10 years ago. Its adjusted trial balance as of June 30, 2023, follows. Credits Debits $114,800 42,300 $ 5,400 4,100 191,000 223,000 Cash Pledges Receivable-Without Donor Restrictions Estimated Uncollectible Pledges Inventory Investments Investme Furniture Furniture and Equipment Accumulated Depreciation-Furniture and Equipment Accounts Payable Accounts Net Assets Without Donor Restrictions We Net. We Net Assets With Donor Restrictions-Programs Net Assets With Donor Restrictions-Permanent Endowment Contact Contributions-Without Donor Restrictions Contributions Contributions-With Donor Restrictions-Programs som " 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 126,500 21,820 197,800 51,800 153,000 350, 120 39,400 10,500 35,000 35,000 289,710 39,700 8, 240 5,490 4,800 3,300 36,500 $994,640 $994, 640 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 $171,814 of cash on hand at the beginning of the year. During the year, the center received cash from contributors: $305,600 that was unrestricted and $39,400 that was restricted for the purchase of equipment for the center. It had $10,500 of income earned and received on long-term investments. The center spent cash of $289,710 on salaries and fringe benefits, $35,000 on the purchase of equipment for the center, and $87,804 for operating expenses. Other pertinent information follows: net pledges receivable increased $4,500, inventory increased $2,300, accounts payable decreased $106,694, and there were no salaries payable at the beginning of the year. a. Prepare a statement of financial position as of June 30, 2023. KARE COUNSELING CENTER Statement of Financial Position June 30, 2023 Assets Cash $ Pledges Receivable Inventory 114,800 36,900 4,100 191,000 96,500 Investments Furniture and Equipment Total Assets $ 443,300 Liabilities Accounts Payable $ 21,820 Total Liabilities 21,820 Net Assets Net Assets Released from RestrictionsWithout Donor Restrictions Net Assets Released from RestrictionsWith Donor Restrictions With Donor Restrictions-Permanent Endowment 153,000 Total Net Assets 153,000 174,820 Total Liabilities and Net Assets $ b. Prepare a statement of expenses by nature and function for the year ended June 30, 2023. KARE COUNSELING CENTER Statement of Expenses by Nature and Function Year Ended June 30, 2023 Program Services All Services Counseling Services Professional Training Community Services Supporting Services Management and General Fund-Raising Total Total Total 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 Total Expenses | $ $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 KARE COUNSELING CENTER Statement of Activities Year Ended June 30, 2023 Without Donor With Donor Restrictions Restrictions Total Revenues, Gains, and Other Support: Contributions $ 0 Investment Income 0 Net Assets With Donor Restrictions Released from Restrictions 0 0 0 0 0 0 Total Revenues, Gains, and Other Support Expenses and Losses: Program Services: Counseling Services Professional Training Community Service 0 0 0 0 0 0 0 Total Program Expenses Support Expenses: Management and General Fund-Raising 0 0 0 0 0 0 0 0 0 Total Support Expenses Total Expenses and Losses Change in Net Assets Net Assets, Beginning of year Net Assets, End of year 0 0 0 0 $ 0 $ 0 $ 0 KARE COUNSELING CENTER Statement of Cash Flows Year Ended June 30, 2023 Cash Flows from Operating Activities: Cash Received as Investment Income Cash Paid to Employees Cash Paid for Operating Expenses Net Cash Used for Operating Activities Cash Flows from Investing Activities: Purchase of Furniture and Equipment Cash Flows from Financing Activities: Proceeds from Contributions Restricted for: Investment in Capital Assets Net Decrease in Cash Cash, Beginning of year Cash, End of year 0 $ 0 Reconciliation of Changes in Net Assets to Net Cash Used for Operating Activities Change in Net Assets Adjustments to Reconcile Changes in Net Assets to Net Cash Provided by Operating Activities: Depreciation Unrealized Gain on Investments Increase in Net Pledges Receivable Increase in Inventory Decrease in Accounts Payable Decrease in Accounts Payable Cash Provided by Operating Activities $ 0 The Kare Counseling Center was incorporated as a not-for-profit organization 10 years ago. Its adjusted trial balance as of June 30, 2023, follows. Credits Debits $114,800 42,300 $ 5,400 4,100 191,000 223,000 Cash Pledges Receivable-Without Donor Restrictions Estimated Uncollectible Pledges Inventory Investments Investme Furniture Furniture and Equipment Accumulated Depreciation-Furniture and Equipment Accounts Payable Accounts Net Assets Without Donor Restrictions We Net. We Net Assets With Donor Restrictions-Programs Net Assets With Donor Restrictions-Permanent Endowment Contact Contributions-Without Donor Restrictions Contributions Contributions-With Donor Restrictions-Programs som " 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 126,500 21,820 197,800 51,800 153,000 350, 120 39,400 10,500 35,000 35,000 289,710 39,700 8, 240 5,490 4,800 3,300 36,500 $994,640 $994, 640 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 $171,814 of cash on hand at the beginning of the year. During the year, the center received cash from contributors: $305,600 that was unrestricted and $39,400 that was restricted for the purchase of equipment for the center. It had $10,500 of income earned and received on long-term investments. The center spent cash of $289,710 on salaries and fringe benefits, $35,000 on the purchase of equipment for the center, and $87,804 for operating expenses. Other pertinent information follows: net pledges receivable increased $4,500, inventory increased $2,300, accounts payable decreased $106,694, and there were no salaries payable at the beginning of the year. a. Prepare a statement of financial position as of June 30, 2023. KARE COUNSELING CENTER Statement of Financial Position June 30, 2023 Assets Cash $ Pledges Receivable Inventory 114,800 36,900 4,100 191,000 96,500 Investments Furniture and Equipment Total Assets $ 443,300 Liabilities Accounts Payable $ 21,820 Total Liabilities 21,820 Net Assets Net Assets Released from RestrictionsWithout Donor Restrictions Net Assets Released from RestrictionsWith Donor Restrictions With Donor Restrictions-Permanent Endowment 153,000 Total Net Assets 153,000 174,820 Total Liabilities and Net Assets $ b. Prepare a statement of expenses by nature and function for the year ended June 30, 2023. KARE COUNSELING CENTER Statement of Expenses by Nature and Function Year Ended June 30, 2023 Program Services All Services Counseling Services Professional Training Community Services Supporting Services Management and General Fund-Raising Total Total Total 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 Total Expenses | $ $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 KARE COUNSELING CENTER Statement of Activities Year Ended June 30, 2023 Without Donor With Donor Restrictions Restrictions Total Revenues, Gains, and Other Support: Contributions $ 0 Investment Income 0 Net Assets With Donor Restrictions Released from Restrictions 0 0 0 0 0 0 Total Revenues, Gains, and Other Support Expenses and Losses: Program Services: Counseling Services Professional Training Community Service 0 0 0 0 0 0 0 Total Program Expenses Support Expenses: Management and General Fund-Raising 0 0 0 0 0 0 0 0 0 Total Support Expenses Total Expenses and Losses Change in Net Assets Net Assets, Beginning of year Net Assets, End of year 0 0 0 0 $ 0 $ 0 $ 0 KARE COUNSELING CENTER Statement of Cash Flows Year Ended June 30, 2023 Cash Flows from Operating Activities: Cash Received as Investment Income Cash Paid to Employees Cash Paid for Operating Expenses Net Cash Used for Operating Activities Cash Flows from Investing Activities: Purchase of Furniture and Equipment Cash Flows from Financing Activities: Proceeds from Contributions Restricted for: Investment in Capital Assets Net Decrease in Cash Cash, Beginning of year Cash, End of year 0 $ 0 Reconciliation of Changes in Net Assets to Net Cash Used for Operating Activities Change in Net Assets Adjustments to Reconcile Changes in Net Assets to Net Cash Provided by Operating Activities: Depreciation Unrealized Gain on Investments Increase in Net Pledges Receivable Increase in Inventory Decrease in Accounts Payable Decrease in Accounts Payable Cash Provided by Operating Activities $ 0