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 | |
| Cash | $ | 119,300 | | | | | | |
| Pledges ReceivableWithout Donor Restrictions | | 41,800 | | | | | | |
| Estimated Uncollectible Pledges | | | | | $ | 4,900 | | |
| Inventory | | 3,600 | | | | | | |
| Investments | | 186,000 | | | | | | |
| Furniture and Equipment | | 218,000 | | | | | | |
| Accumulated DepreciationFurniture and Equipment | | | | | | 124,000 | | |
| Accounts Payable | | | | | | 21,320 | | |
| Net Assets Without Donor Restrictions | | | | | | 197,300 | | |
| Net Assets With Donor RestrictionsPrograms | | | | | | 51,300 | | |
| Net Assets With Donor RestrictionsPermanent Endowment | | | | | | 148,000 | | |
| ContributionsWithout Donor Restrictions | | | | | | 349,620 | | |
| ContributionsWith Donor RestrictionsPrograms | | | | | | 38,900 | | |
| Investment IncomeWithout Donor Restrictions | | | | | | 10,000 | | |
| Net Assets Released from RestrictionsWith Donor Restrictions | | 30,000 | | | | | | |
| Net Assets Released from RestrictionsWithout Donor Restrictions | | | | | | 30,000 | | |
| Salaries and Fringe Benefit Expense | | 289,210 | | | | | | |
| Occupancy and Utility Expense | | 39,200 | | | | | | |
| Supplies Expense | | 7,740 | | | | | | |
| Printing and Publishing Expense | | 4,990 | | | | | | |
| Telephone and Postage Expense | | 4,300 | | | | | | |
| Unrealized Gain on Investments | | | | | | 2,800 | | |
| Depreciation Expense | | 34,000 | | | | | | |
| Totals | $ | 978,140 | | | $ | 978,140 | | |
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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 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 S 119,300 36.900 Cash Pledges Receivable Inventory Investments Furniture and Equipment 3,600 186,000 94,000 Total Assets S 439,800 Liabilities Accounts Payable $ 21,320 21,320 Total Liabilities 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 and General 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 Professional Community Total Fund-Raising Services Training Services All Services Counseling Total Total Total Expenses s os 0 0 $ 0 $ 0 $ 05 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: $ 0 Olo 0 0 0 Total Revenues, Gains, and Other Support Expenses and Losses: Program Services: Ooo 0 0 0 Total Program Expenses Support Expenses: 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 $ 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 S 0 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 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 119,300 36.900 Cash Pledges Receivable Inventory Investments Furniture and Equipment 3,600 186,000 94,000 Total Assets S 439,800 Liabilities Accounts Payable $ 21,320 21,320 Total Liabilities 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 and General 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 Professional Community Total Fund-Raising Services Training Services All Services Counseling Total Total Total Expenses s os 0 0 $ 0 $ 0 $ 05 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: $ 0 Olo 0 0 0 Total Revenues, Gains, and Other Support Expenses and Losses: Program Services: Ooo 0 0 0 Total Program Expenses Support Expenses: 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 $ 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 S 0 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
