Question

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	$	123,800
Pledges Receivable—Without Donor Restrictions		41,300
Estimated Uncollectible Pledges					$	4,400
Inventory		3,100
Investments		181,000
Furniture and Equipment		213,000
Accumulated Depreciation—Furniture and Equipment						121,500
Accounts Payable						20,820
Net Assets Without Donor Restrictions						196,800
Net Assets With Donor Restrictions—Programs						50,800
Net Assets With Donor Restrictions—Permanent Endowment						143,000
Contributions—Without Donor Restrictions						349,120
Contributions—With Donor Restrictions—Programs						38,400
Investment Income—Without Donor Restrictions						9,500
Net Assets Released from Restrictions—With Donor Restrictions		25,000
Net Assets Released from Restrictions—Without Donor Restrictions						25,000
Salaries and Fringe Benefit Expense		288,710
Occupancy and Utility Expense		38,700
Supplies Expense		7,240
Printing and Publishing Expense		4,490
Telephone and Postage Expense		3,800
Unrealized Gain on Investments						2,300
Depreciation Expense		31,500
Totals	$	961,640			$	961,640

 

1. Salaries and fringe benefits were allocated to program services and supporting services in the following percentages: counseling services, 30 percent; professional training, 20 percent; community service, 10 percent; management and general, 20 percent; and fund-raising, 20 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 $166,814 of cash on hand at the beginning of the year. During the year, the center received cash from contributors: $309,600 that was unrestricted and $38,400 that was restricted for the purchase of equipment for the center. It had $9,500 of income earned and received on long-term investments. The center spent cash of $288,710 on salaries and fringe benefits, $25,000 on the purchase of equipment for the center, and $86,804 for operating expenses. Other pertinent information follows: net pledges receivable increased $5,500, inventory increased $1,300, accounts payable decreased $103,694, and there were no salaries payable at the beginning of the year.

Required

1. Prepare a statement of financial position as of June 30, 2020.