ACCOUNTING FOR GOVERNMENTAL AND NONPROFIT ORGANIZATIONS

The statement of net assets for Jackson Hole College, a nongovernmental and nonprofit institution, as of June 30, 20X5, is attached. Transactions for the fiscal year 20X5-20X6 are also provided. REQUIRED: Prepare general journal entries, in proper form, to record the above (2) Prepare a statement of activities, in proper form, for the college for the fiscal (3) Prepare a statement of net assets, in proper form, for the college at June 30 transactions. Be sure to indicate in which net asset classification the entries should be made. year ending June 30, 20X6. 20X6. JACKSON HOLE COLLEGE TRANSACTIONS FOR FISCAL YEAR ENDING JUNE 30, 20X6 (a) Fees charged to students for the fall and spring semesters of fiscal year 20X5-20X6 totaled $2,200,000, of which $2,100,000 was collected in cash. The Allowance For Doubtful Accounts was increased by $4,000 (b) Collections of accounts receivable totaled $20,000. Accounts amounting to $1,000 were written off (c) The deferred revenue of $148,000 shown in the balance sheet resulted from student fees charged for the summer term which began with one month remaining in fiscal year 20X4- 20X5, with the remainder conducted in 20X5-20X6 (d) Fees charged to students for summer school totaled $144,000, all of which were collected in cash. The summer term will have one month conducted in fiscal year 20X5-20X6, with the remainder being conducted in 20X6-20X7 (e) Temporary investments in the amount of $10,000 held at the beginning of the year were sold for S10,500. Restricted funds cash spent for authorized purposes amounted to S2,500. An additional S8,000 was transferred to unrestricted funds in payment of the liability existing on June 30, 20X5 () During the year, accounts payable for purchases, salaries and wages, utility bills, and other expenditures totaling $1,750,000 were recorded. Accounts payable at the end of the year amounted to $70,000 (g) Supplies inventory at the end of the year amounted to $25,000, according to the physical count (h) During the year, the federal grant of S182,000 was received which was restricted for research. Research expenses in that amount were expended during the current year for which these funds had been provided. A further grant restricted for research of $192,000 was made by the state but had not been paid to the college by year end (i) The pledges receivable at the beginning of the year were collected in full in the current fiscal year. They had been pledged in the previous fiscal year but were not available for unrestricted use until the current fiscal year. For the current fiscal year, the college received pledges in the amount of $15,000, of which 1% are expected to be uncollectible, and are restricted for use in next fiscal year. In addition, the college received unrestricted gifts in the amount of $65,000 G) Income was received in cash from the following investments: unrestricted investments, S35,000; permanently restricted investments of $58,000. The income from permanently restricted investments must be used 50% for the acquisition of plant assets and 50% for scholarship funds. (k) All nominal accounts were closed JACKSON HOLE COLLEGE STATEMENT OF NET ASSETS AT JUNE 30. 20X5 ASSETS 73,000 Cash Accounts Receivable--Student Fees Less: Allowance For Doubtful Accounts Pledges Receivable Federal Grants Receivable Inventory (at cost) Investments (at cost) Property, Plant, and Equipment Less: Accumulated Depreciation 25,000 24,000 8,000 182,000 14,000 524,000 1,000) 2,500,000 1,850,000 S 2,675,000 650,000) TOTAL ASSETS LIABILITIES Accounts Payable Deferred Revenue 150,000 148,000 298,000 TOTAL LIABILITIES NET ASSETS S 1,867,000 190,000 320,000 Unrestricted Temporarily Restricted Permanently Restricted 2,377,000 S 2,675,000 TOTAL NET ASSETS TOTAL LIABILITIES AND NET ASSETS