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The Southside Counseling Center was established on January 10, 2020, to provide a variety of counseling services to community residents, including marital and family counseling

The Southside Counseling Center was established on January 10, 2020, to provide a variety of counseling services to community residents, including marital and family counseling and treatment for alcoholism and drug abuse. The centers initial resources were provided by a private foundation in the form of a $2,500,000 capital grant. Of this sum, the foundation designated $1,000,000 for building and equipment and $750,000 for the establishment of a special program for counseling parolees. The following transactions occurred during 2020:

1. Contributions of $1,200,000 were received through the local United Way campaign, and an additional $200,000 was received in direct contributions. Of the direct contributions, $20,000 was for the parolees program and $50,000 was for the building fund; the remaining $130,000, of which $60,000 was in the form of documented pledges expected to be collected within one year, was unrestricted. The pledges are estimated to be 85% collectible. End-of-year contributions expected to be received within one year are reported at net realizable value, with estimated uncollectibles netted against restricted contribution revenue.

2. Out-of-pocket operating expenses for the year were $1,400,000. Of the total, $950,000 are program expenses, $350,000 are administrative expenses, and the remainder are fund-raising expenses. $100,000 of the expenses were unpaid at year-end.

3. The special parolees program had not yet begun as of December 31, 2020. All resources dedicated to this program were invested in short-term securities. Investment income for the year, which was reinvested, was $30,000. There are no unrealized gains or losses on the securities.

4. The center obtained a $2,400,000 mortgage to purchase a building, and obtained a $300,000 3-year note to purchase equipment. The center also used the designated capital grant to finance these purchases; the total cost of the building and equipment was $3,700,000.

5. Interest of $140,000 was accrued and paid on the mortgage and note, all allocated to administrative expense.

6. Depreciation on the building and equipment is $190,000, all allocated to program expenses.

Prepare Southsides statement of activities for 2020 and its statement of financial position at December 31, 2020. Use a negative sign with an answer for net assets released from restrictions and change in net assets, if appropriate. Otherwise, do not use negative signs.

Southside Counseling Center Statement of Activities For the Year Ended December 31, 2020
Net Assets Without Donor Restrictions Net Assets With Donor Restrictions
Revenues, gains, and other support:
Contributions-General $Answer $Answer
Contributions-Grant Answer Answer
Contributions-Parolee program Answer Answer
Contributions-Building fund Answer Answer
Investment income Answer Answer
Net assets released from restrictions Answer Answer
Total revenues, gains and other support Answer Answer
Expenses:
Program expenses Answer Answer
Administrative expenses Answer Answer
Fund-raising expenses Answer Answer
Total expenses Answer Answer
Change in net assets Answer Answer
Net assets, January 1, 2020 Answer Answer
Net assets, December 31, 2020 $Answer

$Answer

Southside Counseling Center Statement of Financial Position December 31, 2020
Assets
Cash $Answer
Contributions receivable, net Answer
Investments Answer
Restricted cash Answer
Building and equipment, net Answer
Total assets $Answer
Liabilities and net assets
Liabilities:
Accounts payable $Answer
Note payable Answer
Mortgage payable Answer
Answer
Net assets:
Without donor restrictions Answer
With donor restrictions Answer
Answer
Total liabilities and net assets $Answer

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