1 of 2 CH 9: Special Units Example: Accounting for Public Universities 1. Student tuition and fees were assessed in the amount $21,500,000. Scholarship allowance $800,000. Unrestricted graduate and assistantship fees $1,500,000. Cash collection was $19,100,000 2. Collected $1,150,000 as summer revenue out of which $300,000 applied to the current semester. Deferred revenue of the summer was earned. 3. State appropriations of $22,500,000 general unrestricted, and S1,300,000 for capital outlay were received in cash. 4. Collected federal and state grant of $5,940,000 of which $3,140,000 was restricted for research and the remaining for scholarship 5. Revenues from bookstore and other services $15,200,000 were collected in cash. 6. Contributions of the following details were collected in cash: $500,000 restricted for scholarships, S620,000 for research, S600,000 for buildings, and S870,000 unrestricted. 7. Donors contributed $1,200,000 of which $700,000 restricted for scholarships and remainder for research. 8. Interest receivable at the beginning was collected of $210,000, of that $185,000 was restricted. 9. Unrestricted investment income $430,000 was earned of which $30,000 was accrued interest at year-end. Restricted income carned $1,970,000 ($1,260,000 for scholarship and $710,000 research) of which $200,000 was accrued. 10. Paid all accounts payable and accrued liabilities of which S491,000 was paid with restricted cash. 11. Paid cash of $50,000,000 for the following incurred unrestricted operating expenses: Salaries $37,787,000, utilities and supplies $14,835,000 of which $1,560,000 was consumed as inventories. 12. Restricted cash of $7,872,000 was paid for the following restricted operating expenses: Salaries $3,042,000, utilities and supplies S1,029,000, and scholarship S4.000.000 13. During the year, depreciation on building, equipment and improvements was amounted to $5,142,000 14. During the year, the following capital expenditure were made: Land $2,125,000, building $1,600,000, equipment S2,400,000, and improvements S400,000. Paid 2,600,000 from restricted cash, $3,825,000 from unrestricted cash, and accrued the remaining. 15. Purchased inventories of $1,355,000 and paid from unrestricted cash. 16. Paid the current portion of long-term liabilities $1,525,000. Interest on revenue bond was $1,500,000 of which $1,380,000 paid in cash. $1,475,000 of the revenue bonds will be paid next year. Transferred $200,000 cash from restricted to unrestricted net position. 17. Increased accrued liabilities of compensated absences by $412,000. 18. Sold short-term investments for $12,770,000. Purchased new short-term investments for $13,550,000 cash and its unrealized gain at year-end amounted to $166,000. Required: 1. Journalize above transaction entries. 2. Prepare the statement of net position. Prepare the statement of revenues, expenses, and change in net position. 1 of 2 CH 9: Special Units Example: Accounting for Public Universities 1. Student tuition and fees were assessed in the amount $21,500,000. Scholarship allowance $800,000. Unrestricted graduate and assistantship fees $1,500,000. Cash collection was $19,100,000 2. Collected $1,150,000 as summer revenue out of which $300,000 applied to the current semester. Deferred revenue of the summer was earned. 3. State appropriations of $22,500,000 general unrestricted, and S1,300,000 for capital outlay were received in cash. 4. Collected federal and state grant of $5,940,000 of which $3,140,000 was restricted for research and the remaining for scholarship 5. Revenues from bookstore and other services $15,200,000 were collected in cash. 6. Contributions of the following details were collected in cash: $500,000 restricted for scholarships, S620,000 for research, S600,000 for buildings, and S870,000 unrestricted. 7. Donors contributed $1,200,000 of which $700,000 restricted for scholarships and remainder for research. 8. Interest receivable at the beginning was collected of $210,000, of that $185,000 was restricted. 9. Unrestricted investment income $430,000 was earned of which $30,000 was accrued interest at year-end. Restricted income carned $1,970,000 ($1,260,000 for scholarship and $710,000 research) of which $200,000 was accrued. 10. Paid all accounts payable and accrued liabilities of which S491,000 was paid with restricted cash. 11. Paid cash of $50,000,000 for the following incurred unrestricted operating expenses: Salaries $37,787,000, utilities and supplies $14,835,000 of which $1,560,000 was consumed as inventories. 12. Restricted cash of $7,872,000 was paid for the following restricted operating expenses: Salaries $3,042,000, utilities and supplies S1,029,000, and scholarship S4.000.000 13. During the year, depreciation on building, equipment and improvements was amounted to $5,142,000 14. During the year, the following capital expenditure were made: Land $2,125,000, building $1,600,000, equipment S2,400,000, and improvements S400,000. Paid 2,600,000 from restricted cash, $3,825,000 from unrestricted cash, and accrued the remaining. 15. Purchased inventories of $1,355,000 and paid from unrestricted cash. 16. Paid the current portion of long-term liabilities $1,525,000. Interest on revenue bond was $1,500,000 of which $1,380,000 paid in cash. $1,475,000 of the revenue bonds will be paid next year. Transferred $200,000 cash from restricted to unrestricted net position. 17. Increased accrued liabilities of compensated absences by $412,000. 18. Sold short-term investments for $12,770,000. Purchased new short-term investments for $13,550,000 cash and its unrealized gain at year-end amounted to $166,000. Required: 1. Journalize above transaction entries. 2. Prepare the statement of net position. Prepare the statement of revenues, expenses, and change in net position