Answer is complete but not entirely correct. KARE COUNSELING CENTER Statement of Activities Year Ended June 30, 2023 Revenues, Gains, and Other Support: Contributions Investment Income Unrealized Gain on Investments Net Assets With Donor Restrictions Released from Restrictions Total Revenues, Gains, and Other Support Expenses and Losses: Program Services: Counseling Services Professional Training Community Service Total Program Expenses Support Expenses: Management and General Fund-Raising Total Support Expenses Total Expenses and Losses Change in Net Assets Net Assets, Beginning of year Net Assets, End of year Without Donor Restrictions With Donor Restrictions Total S 350,220 10,600 $ 3,400 36,000 39,500 S 389,720 10,600 3,400 (36,000) 0 0 400,220 3,500 403,720 146,776 77,088 42,244 266,108 148,776 77,088 42,244 0 0 266,108 77,088 42,244 77,088 42,244 0 119,332 385.440 0 119,332 0 385,440 14,780 3,500 18,280 197,900 51,900 x 249,800 S 212,680 $ 55,400 S 268,080 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. 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 Debits Credits $ 113,900 42,400 $ 5,500 4,200 192,000 224,000 127,000 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. Required c. Prepare a statement of activities for the year ended June 30, 2023. (Amounts to be deducted should be indicated with a minus sign.)

Answer is complete but not entirely correct. KARE COUNSELING CENTER Statement of Activities Year Ended June 30, 2023 Revenues, Gains, and Other Support: Contributions Investment Income Unrealized Gain on Investments Net Assets With Donor Restrictions Released from Restrictions Total Revenues, Gains, and Other Support Expenses and Losses: Program Services: Counseling Services Professional Training Community Service Total Program Expenses Support Expenses: Management and General Fund-Raising Total Support Expenses Total Expenses and Losses Change in Net Assets Net Assets, Beginning of year Net Assets, End of year Without Donor Restrictions With Donor Restrictions Total S 350,220 10,600 $ 3,400 36,000 39,500 S 389,720 10,600 3,400 (36,000) 0 0 400,220 3,500 403,720 146,776 77,088 42,244 266,108 148,776 77,088 42,244 0 0 266,108 77,088 42,244 77,088 42,244 0 119,332 385.440 0 119,332 0 385,440 14,780 3,500 18,280 197,900 51,900 x 249,800 S 212,680 $ 55,400 S 268,080 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. 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 Debits Credits $ 113,900 42,400 $ 5,500 4,200 192,000 224,000 127,000 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. Required c. Prepare a statement of activities for the year ended June 30, 2023. (Amounts to be deducted should be indicated with a minus sign.)

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter28: Income Taxation Of Trusts And Estates

Section: Chapter Questions

Problem 16CE

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