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 $ 126,500 Pledges Receivable—Without Donor Restrictions 41,000 Estimated Uncollectible Pledges $ 4,100 Inventory 2,800 Investments 178,000 Furniture and Equipment 210,000 Accumulated Depreciation—Furniture and Equipment 120,000 Accounts Payable 20,520 Net Assets Without Donor Restrictions 196,500 Net Assets With Donor Restrictions—Programs 50,500 Net Assets With Donor Restrictions—Permanent Endowment 140,000 Contributions—Without Donor Restrictions 348,820 Contributions—With Donor Restrictions—Programs 38,100 Investment Income—Without Donor Restrictions 9,200 Net Assets Released from Restrictions—With Donor Restrictions 22,000 Net Assets Released from Restrictions—Without Donor Restrictions 22,000 Salaries and Fringe Benefit Expense 288,410 Occupancy and Utility Expense 38,400 Supplies Expense 6,940 Printing and Publishing Expense 4,190 Telephone and Postage Expense 3,500 Unrealized Gain on Investments 2,000 Depreciation Expense 30,000 Totals $ 951,740 $ 951,740 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. The organization had $165,314 of cash on hand at the beginning of the year. During the year, the center received cash from contributors: $310,800 that was unrestricted and $38,100 that was restricted for the purchase of equipment for the center. It had $9,200 of income earned and received on long-term investments. The center spent cash of $288,410 on salaries and fringe benefits, $22,000 on the purchase of equipment for the center, and $86,504 for operating expenses. Other pertinent information follows: net pledges receivable increased $6,000, inventory increased $1,000, accounts payable decreased $102,594, and there were no salaries payable at the beginning of the year. Prepare a statement of activities for the year ended June 30, 2020. (Amounts to be deducted should be indicated with a minus sign.)

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 $ 126,500 Pledges Receivable—Without Donor Restrictions 41,000 Estimated Uncollectible Pledges $ 4,100 Inventory 2,800 Investments 178,000 Furniture and Equipment 210,000 Accumulated Depreciation—Furniture and Equipment 120,000 Accounts Payable 20,520 Net Assets Without Donor Restrictions 196,500 Net Assets With Donor Restrictions—Programs 50,500 Net Assets With Donor Restrictions—Permanent Endowment 140,000 Contributions—Without Donor Restrictions 348,820 Contributions—With Donor Restrictions—Programs 38,100 Investment Income—Without Donor Restrictions 9,200 Net Assets Released from Restrictions—With Donor Restrictions 22,000 Net Assets Released from Restrictions—Without Donor Restrictions 22,000 Salaries and Fringe Benefit Expense 288,410 Occupancy and Utility Expense 38,400 Supplies Expense 6,940 Printing and Publishing Expense 4,190 Telephone and Postage Expense 3,500 Unrealized Gain on Investments 2,000 Depreciation Expense 30,000 Totals $ 951,740 $ 951,740 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. The organization had $165,314 of cash on hand at the beginning of the year. During the year, the center received cash from contributors: $310,800 that was unrestricted and $38,100 that was restricted for the purchase of equipment for the center. It had $9,200 of income earned and received on long-term investments. The center spent cash of $288,410 on salaries and fringe benefits, $22,000 on the purchase of equipment for the center, and $86,504 for operating expenses. Other pertinent information follows: net pledges receivable increased $6,000, inventory increased $1,000, accounts payable decreased $102,594, and there were no salaries payable at the beginning of the year. Prepare a statement of activities for the year ended June 30, 2020. (Amounts to be deducted should be indicated with a minus sign.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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	$	126,500
Pledges Receivable—Without Donor Restrictions		41,000
Estimated Uncollectible Pledges				$	4,100
Inventory		2,800
Investments		178,000
Furniture and Equipment		210,000
Accumulated Depreciation—Furniture and Equipment					120,000
Accounts Payable					20,520
Net Assets Without Donor Restrictions					196,500
Net Assets With Donor Restrictions—Programs					50,500
Net Assets With Donor Restrictions—Permanent Endowment					140,000
Contributions—Without Donor Restrictions					348,820
Contributions—With Donor Restrictions—Programs					38,100
Investment Income—Without Donor Restrictions					9,200
Net Assets Released from Restrictions—With Donor Restrictions		22,000
Net Assets Released from Restrictions—Without Donor Restrictions					22,000
Salaries and Fringe Benefit Expense		288,410
Occupancy and Utility Expense		38,400
Supplies Expense		6,940
Printing and Publishing Expense		4,190
Telephone and Postage Expense		3,500
Unrealized Gain on Investments					2,000
Depreciation Expense		30,000
Totals	$	951,740		$	951,740

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.
The organization had $165,314 of cash on hand at the beginning of the year. During the year, the center received cash from contributors: $310,800 that was unrestricted and $38,100 that was restricted for the purchase of equipment for the center. It had $9,200 of income earned and received on long-term investments. The center spent cash of $288,410 on salaries and fringe benefits, $22,000 on the purchase of equipment for the center, and $86,504 for operating expenses. Other pertinent information follows: net pledges receivable increased $6,000, inventory increased $1,000, accounts payable decreased $102,594, and there were no salaries payable at the beginning of the year.

Prepare a statement of activities for the year ended June 30, 2020. (Amounts to be deducted should be indicated with a minus sign.)

Total Support Expenses
Total Expenses and Losses
Change in Net Assets
Net Assets, July 1, 2019
Net Assets, June 30, 2020
$
$

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:
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