Elizabeth College, a small private college, had the following transactions in fiscal year 2023.

1. Gross tuition and fees revenue totaled $5,600,000. Tuition waivers and scholarships of $346,000 were granted. Of the tuition waivers granted, $276,400 was for teaching assistantships, which is an instruction expense.

2. Students received tuition refunds of $101,670.

3. During the year, the college received $1,891,000 cash in unrestricted private gifts, $575,200 cash restricted for grants, and $1,000,000 in securities for an endowment.

4. A pledge campaign generated $1,090,000 in pledges. Of the amount pledged, $573,200 was for the capital construction campaign, $300,000 was for endowments, and the remainder of the pledges had no purpose restrictions. The pledges will all be collected in 2024.

5. Auxiliary enterprises provided goods and services that generated $94,370 in cash.

6. Collections of tuition receivable totaled $5,080,000.

7. Unrestricted cash of $1,000,000 was invested.

8. The college purchased computer equipment at a cost of $10,580. It was determined that the computer equipment cost met the college’s capitalization threshold.

9. During the year, the following expenses were paid: 

10. Instruction provided $450,000 in services related to the restricted grant recorded in transaction 3.

11. At year-end, the allowance for uncollectible tuition and fees was increased by $7,200. The fair value of investments had increased $11,540; of this amount, $3,040 was associated with endowment investments and allocated to net assets with donor restrictions, with the remainder allocated to net assets without donor restrictions. Depreciation on plant and equipment was allocated $34,750 to instruction, $41,000 to auxiliary enterprises, and $12,450 to academic support.

12. All nominal accounts were closed.

Required

a. Prepare journal entries in good form to record the foregoing transactions for the fiscal year ended June 30, 2023.

b. Prepare a statement of activities for the year ended June 30, 2023. Assume beginning net asset amounts of $7,518,000 without donor restrictions and $5,200,000 with donor restrictions.

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Instruction Academic support Student services Institutional support Auxiliary enterprises $3,566,040 1,987,000 87,980 501,130 92,410