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 $ 113,900 42,400 $ 5,500 4,200 192,000 224,000 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 127,000 21,920 197,900 51,900 154,000 350,220 39,500 10,600 36,000 36,000 289,810 39,800 8,340 5,590 4,900 3,400 37,000 $ 997,940 $ 997,940 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 $172,314 of cash on hand at the beginning of the year. During the year, the center received cash from contributors: $305,200 that was unrestricted and $39,500 that was restricted for the purchase of equipment for the center. It had $10,600 of income earned and received on long-term investments. The center spent cash of $289,810 on salaries and fringe benefits, $36,000 on the purchase of equipment for the center, and $87,904 for operating expenses. Other pertinent information follows: net pledges receivable increased $4,400, inventory increased $2,400, accounts payable decreased $106,994, and there were no salaries payable at the beginning of the year. a. Prepare a statement of financial position as of June 30, 2020. KARE COUNSELING CENTER Statement of Financial Position June 30, 2020 Assets Total Assets Liabilities Total Liabilities Net Assets Total Net Assets Total Liabilities and Net Assets 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 Fund Raising and General Total Total Total Expenses KARE COUNSELING CENTER Statement of Activities Year Ended June 30, 2020 Without Donor Restrictions With Donor Restrictions Total 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