What are GAAP requirements for preparing financialstatements?

Use the following adjusted trial balance for Decatur HealthClinic to Create a statement of financial position, statement offunctional expenses, statement of activities, and statement of cashflows

Decatur HealthClinic
Adjusted Trial Balance
As of June 30, 20X7
		Debits	Credits
Cash		150,500
PledgesReceivable-Unrestricted		36,000
Estimated UncollectiblePledges			2,300
Inventory		2,800
Investment		178,000
Furniture and Equipment		210,000
AccumulatedDepreciation-Furniture and Equipment			125,000
Accounts payable			20,520
Unrestricted Net Assets			206,500
Temporarily Restricted NetAssets			61,300
Permanently Restricted NetAssets			140,000
Contributions-Unrestricted			348,820
Contributions-TemporarilyRestricted			38,100
InvestmentIncome-Unrestricted			9,200
Net Assets Released fromRestrictions-
	Temporarily Restricted	22,000
Net Assets released fromRestrictions-
	Unrestricted		22,000
Salaries and Fringe BenefitExpense		288,410
Occupancy and UtilityExpense		38,400
Supplies Expense		6,940
Printing and PublishingExpenses		4,190
Telephone and PostageExpense		3,500
Unrealized Gain orInvestments			2,000
Depreciation Expense		35,000
	Totals	975,740	975,740

. Prepare all financial statements as of June 30, 20X7 includingthe following transactions.

There were five functional expense categories, which salariesand fringe benefits totaling $288,410 were allocated to with thefollowing percentages: counseling services, 30%; professionaltraining, 25%; community service, 15%; management and general, 20%;and fund-raising, 10%.

Occupancy and utility, supplies, printing and publishing, andtelephone and postage expense were allocated to the programs usingthe same allocation procedures.

The five expense categories received equal amounts ofdepreciation expense. Decatur Health Clinic had $162,150 of cash onhand at the beginning of the year and received cash fromcontributors of $305,200, which was unrestricted. $38,100 wasrestricted for the purchase of a machine for the clinic.

Income earned and received on long- term investments was$9,200.

The purchase of the machine for the clinic was $22,000 and$82,500 for operating expenses.

Net pledges receivable increased $6,000, inventory decreased$1,000, accounts payable decreased $102,500, and there were nosalaries payable at the beginning of the year.