Expenses totaling $$685,000$ for salaries, supplies, utilities, and other items to be paid in cash are approved for payment through accounts payable. A total of $$580,000$ of outstanding accounts payable were paid by year$-$end. Although both GASB and FASB permit classification by natural category, the functional categories appearing below are recommended by NACUBO $($amounts are assumed$)$:

Instruction expense $300,000$

Research expense $100,000$

Auxiliary enterprise expense $160,000$

Institutional support expense $125,000$

Included in the expenses recorded in the previous transactions are $$132,000$ incurred under federal and state government grants. Bills were sent to the granting agencies and $$106,500$ was received by the end of the year.

Adjusting entries:

The note payable was dated April $1,2020.$ Interest is paid annually on March $31.$ The Institute accrued three months of interest at $6$ percent.

Each year, a portion of the amount received as summer school tuition is deferred to the next academic year. The amount to be deferred is determined to be $$9,100.$

Depreciation expense of $$165,000$ is recorded on buildings and equipment. The expense is allocated to functional areas on the basis of actual equipment in use and square footage for buildings $($amounts assumed$).$

Instruction expense $75,000$

Research expense $30,000$

Auxiliary enterprise expense $35,000$

Institutional support expense $25,000$

Required:

Prepare journal entries recording the events above for the year ending December $31,2020.$

Post the journal entries to T$-$accounts.

page $348$Prepare closing entries.

Prepare a Statement of Revenues, Expenses, and Changes in Fund Net Position.

Prepare a Statement of Net Position.

Prepare a Statement of Cash Flows

Type Journal Entries here and Post

to T$-$Accounts

Debits

CreditsType Journal Entries here and Post

to T$-$Accounts

Debits

Credits