(AICPA adapted) Montana College is a privately funded college. Below is its trial balance as of January 1, 2020: Dr Cash 1,350 Accounts receivable 900 Cash restricted 650 Investments 6,000 Property, plant, and equipment, net 30,000 Cr Accrued liabilities 1,200 Bonds payable 11,000 Unrestricted net assets 17,200 Temporarily restricted net assets 5,000 Permanently restricted net assets _____ 4,500 Total 38,900 38,900 Events for 2020 are as follows (in thousands):

1. Tuition and fees are $18,000, of which $2,000 is waived for graduate teaching assistantships and $4,400 is covered by scholarships. $11,000 is collected in cash. All tuition and fees relate to 2020.

2. Operating expenses for salaries, utilities, research programs, etc. are $16,000, all paid in cash. Accrued liabilities of $1,000 were paid in cash. Depreciation on the buildings and equipment is $500.

3. An unrestricted state appropriation of $8,400 is received in cash.

4. Cash donations and gifts for equipment replacement are as follows:

Restricted to equipment replacement 1,100

Restricted to research projects 400

5. $1500 of donor-restricted cash is spent to replace equipment. $400 of donor-restricted cash is spent for research projects (included in Item 2 above).

6. $450 is spent to service the bonds ($250 for interest, and $200 for principal; the interest is not included in Item 2 above).

7. Investment income, received in cash, is $4,000, of which $600 is donor-restricted to research programs. Donorrestricted cash used for research programs is $500, included in Item 2 above. Investments have a fair value of $10,250 at year-end. Unrealized gains and losses are unrestricted.

Instructions: a. Prepare journal entries to record the transaction. Indicate whether each entry would affect unrestricted (UR), temporarily restricted (TR), or permanent restricted (PR) net assets. b. Present Montana Colleges statement of activities for 2020. c. Present Montana Colleges statement of financial position as of December 31, 2020.