Erikstein Colleges statement of financial position for the year ended June 30, 2013, is presented here. Erikstein

Erikstein College’s statement of financial position for the year ended June 30, 2013, is presented here. Erikstein is a private college.

The following transaction information pertains to the year ended June 30, 2014.
1. During the year charges for tuition and fees were $244,500; tuition allowances and scholarships were $48,700.
2. The college received unrestricted cash contributions of $2,080, temporarily restricted pledges of $550, and cash contributions to the endowments of $335.
3. Collections on Tuition and Fees Receivable totaled $168,600.
4. Net deposits returned to students totaled $10.
5. Expenses were incurred for:
Instruction ...... $86,100
Academic support ... 23,300
Student services ..... 37,700
Institutional support .. 28,500
All but $5,300 of the expenses were paid. Expenses incurred resulted in the release of $7,320 in temporarily restricted net assets.
6. The ending balance in Accounts Payable and Accrued Liabilities was $22,230.
7. Investment earnings received for the period were $3,960, of which $2,070 was temporarily restricted.
8. Adjusting entries for the period were made to increase Allowance for Doubtful Pledges by $20, to record depreciation expense of $26,400 (charged 70 percent to instruction and 30 percent to academic support), to adjust tuition revenue for an increase in deferred revenue of $10, and to recognize an increase in fair value of investments of $4,700 ($790 was related to temporarily restricted net assets, $1,610 was related to permanently restricted net assets, the remainder was related to unrestricted net assets).
9. Nominal accounts were closed.

Required
a. Prepare journal entries in good form to record the foregoing transactions for the year ended June 30, 2014.
b. Prepare a statement of activities for the year ended June 30, 2014.
c. Prepare a statement of financial position for the year ended June 30,2014.

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ERIKSTEIN COLLEGE Statement of Financial Position June 30, 2013 (amounts in thousands) Assets Cash and cash equivalents Tuition and fees receivable Pledges receivable (net of doubtful accounts of $280) Prepaid expenses and other assets Investments (at fair value, cost of $162,000) Property, plant and equipment (net of accumulated depreciation S7,200 1,430 6,120 2,000 158,400 (net of doubtful accoun ts of $90) of $104,240) Total assets 260,600 S435,750 Liabilities and Net Assets Liabilities: S 20,130 4,700 900 149,000 174,730 Accou nts payable and accrued liabilities Deposits held in custody for others Deterred revenue Bonds payable Total liabilities Net Assets: Unrestricted Temporarily restricted Permanently restricterd Total net assets $174,000 33,040 53,980 261,020 S435,750 Total liabilities and net assets