The Southside Counseling Center was established on January 10, 2023 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 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 2023:

1. Unrestricted cash contributions of $1,200,000 were received through the local United Way campaign. An additional $140,000 was received in direct cash contributions, of which $20,000 is restricted to the parolees program and $50,000 was for the building fund. Documented promises of $60,000 were received, collectible within the next year. These promises are unrestricted and expected to be 85% collectible. Bad debt expense is included with administrative expenses.

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, 2023. 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 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 expenses.

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

Required

a. Prepare journal entries to record the transactions for 2023.

General Journal
Ref.	Description	Debit	Credit
	Restricted cash	Answer	Answer
	AnswerAccounts payableAdministrative expensesAllowance for uncollectiblesBuilding and equipment, netCashContributions receivableContributions revenue - use restrictedContributions revenue - time restrictedInvestment income-unrestrictedInvestmentsMortgage payableNet assets released from restrictions-restrictedNet assets released from restrictions-unrestrictedProgram expenses	Answer	Answer
	AnswerAccounts payableAdministrative expensesAllowance for uncollectiblesBuilding and equipment, netCashContributions receivableContributions revenue - use restrictedContributions revenue - time restrictedInvestment income-unrestrictedInvestmentsMortgage payableNet assets released from restrictions-restrictedNet assets released from restrictions-unrestrictedProgram expenses	Answer	Answer
	Contributions revenue - unrestricted	Answer	Answer
	To record receipt of initial resources provided by a private foundation.
1.	Cash	Answer	Answer
	Restricted cash	Answer	Answer
	AnswerAccounts payableAdministrative expensesAllowance for uncollectiblesBuilding and equipment, netCashContributions receivableContributions revenue - use restrictedContributions revenue - time restrictedInvestment income-unrestrictedInvestmentsMortgage payableNet assets released from restrictions-restrictedNet assets released from restrictions-unrestrictedProgram expenses	Answer	Answer
	AnswerAccounts payableAdministrative expensesAllowance for uncollectiblesBuilding and equipment, netCashContributions receivableContributions revenue - use restrictedContributions revenue - time restrictedInvestment income-unrestrictedInvestmentsMortgage payableNet assets released from restrictions-restrictedNet assets released from restrictions-unrestrictedProgram expenses	Answer	Answer
	Contributions revenue -unrestricted	Answer	Answer
	Contributions revenue - use restricted	Answer	Answer
	Contributions revenue - time restricted	Answer	Answer
2.	AnswerAccounts payableAdministrative expensesAllowance for uncollectiblesBuilding and equipment, netCashContributions receivableContributions revenue - use restrictedContributions revenue - time restrictedInvestment income-unrestrictedInvestmentsMortgage payableNet assets released from restrictions-restrictedNet assets released from restrictions-unrestrictedProgram expenses	Answer	Answer
	Administrative expenses	Answer	Answer
	Fund-raising expenses	Answer	Answer
	Accounts payable	Answer	Answer
	AnswerAccounts payableAdministrative expensesAllowance for uncollectiblesBuilding and equipment, netCashContributions receivableContributions revenue - use restrictedContributions revenue - time restrictedInvestment income-unrestrictedInvestmentsMortgage payableNet assets released from restrictions-restrictedNet assets released from restrictions-unrestrictedProgram expenses	Answer	Answer
3.	AnswerAccounts payableAdministrative expensesAllowance for uncollectiblesBuilding and equipment, netCashContributions receivableContributions revenue - use restrictedContributions revenue - time restrictedInvestment income-unrestrictedInvestmentsMortgage payableNet assets released from restrictions-restrictedNet assets released from restrictions-unrestrictedProgram expenses	Answer	Answer
	Cash	Answer	Answer
	AnswerAccounts payableAdministrative expensesAllowance for uncollectiblesBuilding and equipment, netCashContributions receivableContributions revenue - use restrictedContributions revenue - time restrictedInvestment income-unrestrictedInvestmentsMortgage payableNet assets released from restrictions-restrictedNet assets released from restrictions-unrestrictedProgram expenses	Answer	Answer
4.	AnswerAccounts payableAdministrative expensesAllowance for uncollectiblesBuilding and equipment, netCashContributions receivableContributions revenue - use restrictedContributions revenue - time restrictedInvestment income-unrestrictedInvestmentsMortgage payableNet assets released from restrictions-restrictedNet assets released from restrictions-unrestrictedProgram expenses	Answer	Answer
	AnswerAccounts payableAdministrative expensesAllowance for uncollectiblesBuilding and equipment, netCashContributions receivableContributions revenue - use restrictedContributions revenue - time restrictedInvestment income-unrestrictedInvestmentsMortgage payableNet assets released from restrictions-restrictedNet assets released from restrictions-unrestrictedProgram expenses	Answer	Answer
	To record reclassification of net assets.
	AnswerAccounts payableAdministrative expensesAllowance for uncollectiblesBuilding and equipment, netCashContributions receivableContributions revenue - use restrictedContributions revenue - time restrictedInvestment income-unrestrictedInvestmentsMortgage payableNet assets released from restrictions-restrictedNet assets released from restrictions-unrestrictedProgram expenses	Answer	Answer
	Note payable	Answer	Answer
	Restricted cash	Answer	Answer
	AnswerAccounts payableAdministrative expensesAllowance for uncollectiblesBuilding and equipment, netCashContributions receivableContributions revenue - use restrictedContributions revenue - time restrictedInvestment income-unrestrictedInvestmentsMortgage payableNet assets released from restrictions-restrictedNet assets released from restrictions-unrestrictedProgram expenses	Answer	Answer
	To record purchase of building.
5.	AnswerAccounts payableAdministrative expensesAllowance for uncollectiblesBuilding and equipment, netCashContributions receivableContributions revenue - use restrictedContributions revenue - time restrictedInvestment income-unrestrictedInvestmentsMortgage payableNet assets released from restrictions-restrictedNet assets released from restrictions-unrestrictedProgram expenses	Answer	Answer
	AnswerAccounts payableAdministrative expensesAllowance for uncollectiblesBuilding and equipment, netCashContributions receivableContributions revenue - use restrictedContributions revenue - time restrictedInvestment income-unrestrictedInvestmentsMortgage payableNet assets released from restrictions-restrictedNet assets released from restrictions-unrestrictedProgram expenses	Answer	Answer
6.	AnswerAccounts payableAdministrative expensesAllowance for uncollectiblesBuilding and equipment, netCashContributions receivableContributions revenue - use restrictedContributions revenue - time restrictedInvestment income-unrestrictedInvestmentsMortgage payableNet assets released from restrictions-restrictedNet assets released from restrictions-unrestrictedProgram expenses	Answer	Answer
	AnswerAccounts payableAdministrative expensesAllowance for uncollectiblesBuilding and equipment, netCashContributions receivableContributions revenue - use restrictedContributions revenue - time restrictedInvestment income-unrestrictedInvestmentsMortgage payableNet assets released from restrictions-restrictedNet assets released from restrictions-unrestrictedProgram expenses	Answer	Answer

b. Prepare Southsides statement of activities for 2023 and its statement of financial position at December 31, 2023. Prepare Southside's statement of cash flows for 2023, using the direct method for the operating section. 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, 2023
	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, 2023	Answer	Answer
Net assets, December 31, 2023	Answer	Answer

Southside Counseling Center Statement of Financial Position December 31, 2023
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

Please answer all parts of the question.