and University Accounting-Private Institutions 3 el-Based Problems Us ear with the following account balances DebitsCredits ht 5 350000 ,618,00 Acounts Recewable for Uncollectible Accounts Accrued Interest Recervable Contribubons Receivable Alowance for Uncolectible Contributions Loans to Students and Faculey Long-Term Investments Property. Plant, and Equipment Accoumulated Depreciation 49 000 425,000 520,000 Property, Plant, and Equipment Accounts Payable Long-Term Debt: Current instalment Lang-Term Debt: Noncurrent Net Assets-Unrestricted Board Designated Vet Assets-Unrestricted-Undesignated Net Assets-Temporarily Restricted et Assets- Permanently Restricted 500 000 50,000 8,500 000 2,815,000 400,000 5.555,000 0.087 000 $38 742.00-742.00 otals During the year ended June 30, 2015, the following transactions occurred 1. Cash collections included: accounts receivable. $1.227,000 accrued in terest receivable, $49,000; contributions receivable, $4,985,000; and for Joans to students and faculty. $155,000. Of the contributions, $1,900,000 was for plant acquisition (use for cash flow statement) Cash payments included accounts payable. $130,000 andthe curent por tion of long-term debt, $150,000. revenues included tuition and fees, $21,740000 unestricted dowment investments, $400000, other investment income 3. Unrestricted income o $300,000; and sales and services of auxiliary enteprises $33,690 creased: accounts in cash was received, and the following receivables were i Schol entfor which no services were required, were applied to st t receivable, $3,500,000; accrucd inerest receivahle, $500 Contribuints in the amount of $2,70,000 ntributions were received $4,900,000: temporarily res tio aporarily restricted, $5,400000: permanently resmioked $2000,000. of that restricted to plant acquisiti amount, $7,020,000 was received in cash; contnibe unt of $50000 and an- ons were received in the following amcunts toeased S5,280,000. None of these contributioas were receivable were written ofin the amour 364 Chapter 11 for bad debts were increased by $175,000 for accounts receivable (tuitico and fees) and by 330.000 for unrestricted contributions receivable 7. Expenses, exclusive of depreciation, were as follows: instruction,$18,6o0x research, $1,980,000 public service, $1,9100x0 cademic suppont, $990,000; student services, S1,310,000, institutional support, $1,050n and auxiliary enterprises, S13,500,000. The college lad an uninsured flood loss in the amount of $600,0000, Cash was paid in the amount of $39,30.00, and accounts payable increased by $600,000 Depreciation was charged in the amount of $2.100,00. One third of tha amount was charged each to instruction, institutiornal support,and auxilary enterprises 9, Interest income was earned as follows: addition to temporarily restricted net assets, $30,000; addition to pemanently restricted net assets, $35,000 Of those amounts, S55,000 was received in cash and $10,000 was accrued at year-end 10. Research expense was incurred in the amount of $1,700,000 and prop erty, plant, and equipment were acquired in the amount of $1.400,000 Both were paid in cash. 11. Reclassifications were made from temporarily restricted to unrestricted net assets as follows: on the basis of time restrictions, $1,600,000 for program restrictions (research), $1,700,000; and for fixed asset acquisi- tion restrictions, $1,400,000. Korner records fixed assets as increases in unrestricted net assets. 12. Long-term investments, with a carrying value of $1,700,000, were sold for $1.770,000. Of the $70,000 gain, $40,000 was temporarily restricted by donor agreement and $30,000 is required to be added to permanently restricted net assets 13. Additional investments were purchased in the amount Loans were made to students and faculty in the amount of $200,000 14. In addition to 13 above, the board of trustees decided to purchase $2.000,000 in long-term investments, from unrestricted net assets, to cre ate a quasi-endowment. 15. At year-end, the fair value of investments increased by $530,000. 0f chai amount, $300,000 increased unrestricted net assets, $30,000 increa temporarily restricted net assets, and $200,000 increased permaneaily restricted net assets 16. $150,000 of the long-term debt was reclassified as a current liab restricted net assets, and (c) permanently restricted net assets. Required a. Prepare journal entries for each of the above transactions g entries were prepared for (a) unrestricted net assets, tb) tempeoran Changes in Unrestricted Net Assets for Korner College for the ts year ended June 30, 2015 Kos,and Other College and University Accounting-Private Institutions 365 are a Statement of Changes in Net Assets for Korner College for the c. Prep d. e. Prepare a Statement of Cash Flows for Korner College for the year ended fiscal year ended June 30, 2015. Prepare a Statement of Financial Position for Korner College as of June 30, 2015. June 30, 2015. Use the indirect method. and University Accounting-Private Institutions 3 el-Based Problems Us ear with the following account balances DebitsCredits ht 5 350000 ,618,00 Acounts Recewable for Uncollectible Accounts Accrued Interest Recervable Contribubons Receivable Alowance for Uncolectible Contributions Loans to Students and Faculey Long-Term Investments Property. Plant, and Equipment Accoumulated Depreciation 49 000 425,000 520,000 Property, Plant, and Equipment Accounts Payable Long-Term Debt: Current instalment Lang-Term Debt: Noncurrent Net Assets-Unrestricted Board Designated Vet Assets-Unrestricted-Undesignated Net Assets-Temporarily Restricted et Assets- Permanently Restricted 500 000 50,000 8,500 000 2,815,000 400,000 5.555,000 0.087 000 $38 742.00-742.00 otals During the year ended June 30, 2015, the following transactions occurred 1. Cash collections included: accounts receivable. $1.227,000 accrued in terest receivable, $49,000; contributions receivable, $4,985,000; and for Joans to students and faculty. $155,000. Of the contributions, $1,900,000 was for plant acquisition (use for cash flow statement) Cash payments included accounts payable. $130,000 andthe curent por tion of long-term debt, $150,000. revenues included tuition and fees, $21,740000 unestricted dowment investments, $400000, other investment income 3. Unrestricted income o $300,000; and sales and services of auxiliary enteprises $33,690 creased: accounts in cash was received, and the following receivables were i Schol entfor which no services were required, were applied to st t receivable, $3,500,000; accrucd inerest receivahle, $500 Contribuints in the amount of $2,70,000 ntributions were received $4,900,000: temporarily res tio aporarily restricted, $5,400000: permanently resmioked $2000,000. of that restricted to plant acquisiti amount, $7,020,000 was received in cash; contnibe unt of $50000 and an- ons were received in the following amcunts toeased S5,280,000. None of these contributioas were receivable were written ofin the amour 364 Chapter 11 for bad debts were increased by $175,000 for accounts receivable (tuitico and fees) and by 330.000 for unrestricted contributions receivable 7. Expenses, exclusive of depreciation, were as follows: instruction,$18,6o0x research, $1,980,000 public service, $1,9100x0 cademic suppont, $990,000; student services, S1,310,000, institutional support, $1,050n and auxiliary enterprises, S13,500,000. The college lad an uninsured flood loss in the amount of $600,0000, Cash was paid in the amount of $39,30.00, and accounts payable increased by $600,000 Depreciation was charged in the amount of $2.100,00. One third of tha amount was charged each to instruction, institutiornal support,and auxilary enterprises 9, Interest income was earned as follows: addition to temporarily restricted net assets, $30,000; addition to pemanently restricted net assets, $35,000 Of those amounts, S55,000 was received in cash and $10,000 was accrued at year-end 10. Research expense was incurred in the amount of $1,700,000 and prop erty, plant, and equipment were acquired in the amount of $1.400,000 Both were paid in cash. 11. Reclassifications were made from temporarily restricted to unrestricted net assets as follows: on the basis of time restrictions, $1,600,000 for program restrictions (research), $1,700,000; and for fixed asset acquisi- tion restrictions, $1,400,000. Korner records fixed assets as increases in unrestricted net assets. 12. Long-term investments, with a carrying value of $1,700,000, were sold for $1.770,000. Of the $70,000 gain, $40,000 was temporarily restricted by donor agreement and $30,000 is required to be added to permanently restricted net assets 13. Additional investments were purchased in the amount Loans were made to students and faculty in the amount of $200,000 14. In addition to 13 above, the board of trustees decided to purchase $2.000,000 in long-term investments, from unrestricted net assets, to cre ate a quasi-endowment. 15. At year-end, the fair value of investments increased by $530,000. 0f chai amount, $300,000 increased unrestricted net assets, $30,000 increa temporarily restricted net assets, and $200,000 increased permaneaily restricted net assets 16. $150,000 of the long-term debt was reclassified as a current liab restricted net assets, and (c) permanently restricted net assets. Required a. Prepare journal entries for each of the above transactions g entries were prepared for (a) unrestricted net assets, tb) tempeoran Changes in Unrestricted Net Assets for Korner College for the ts year ended June 30, 2015 Kos,and Other College and University Accounting-Private Institutions 365 are a Statement of Changes in Net Assets for Korner College for the c. Prep d. e. Prepare a Statement of Cash Flows for Korner College for the year ended fiscal year ended June 30, 2015. Prepare a Statement of Financial Position for Korner College as of June 30, 2015. June 30, 2015. Use the indirect method