15-2 Private College Transactions Erikstein College's statement of financial position for the year ended June 30, 2013, is presented here. Erikstein is a private college.

Erikstein College

Stmt of Fin Position

June 30, 2013 (amounts in thousands)

Assets:

Cash and cash equivalents $7,200

Tuition and fees receivable (net of doubtful accts of $90) 1,430

Pledges receivable (net of doubtful accts of $280) 6,120

Prepaid Exps and other assets 2,000

Investments (@ Fair Value, cost of $162,000) 158,400

Property, Plant, & Equip (net of Accumulated Dep of $104, 240) 260,600

Total assets: 435,750

Liabs and Net Assets:

Liabs:

Accts payable and accrued liabs $20,130

Deposits held in custody for others 4,700

Deferred Revenue 900

Bonds Payable 149,000

Total Liabs: 174,730

Net Assets:

Unrestricted 174,000

Temporarily Restricted 33,040

Permanently Restricted 53,980

Total Net Assets: 261,020

Total Liabs and net assets: 435,750

**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.