Focus of the Final Project

Review the financial information pertaining to Lee College in problem 11-8 on pages 362 of your text. Prepare the following:

1. A Statement of Activities using the format presented in Illustration 10-1.
2. A Statement of Unrestricted Revenues, Expenses, and Other Changes in Unrestricted Net Assets.
3. A Statement of Changes in Net Assets.

Financial information in problem 11-8:

Presented below are the closing entries for Lee College, a private not-for-profit, for the year ended December 31, 2014. Debits Credits RevenuesUnrestrictedTuition and Fees $11,200,000 RevenuesUnrestrictedUnrestricted Income on Endowment Investments 40,000 RevenuesUnrestrictedSales and Services of Auxiliary Enterprises 5,000,000 RevenuesUnrestrictedContributions 100,000 Reclassifications to Unrestricted Net Assets Satisfaction of Program Restrictions 640,000 Reclassifications to Unrestricted Net Assets Satisfaction of Plant Acquisition Restrictions 1,160,000 Tuition DiscountUnrestrictedStudent Aid $ 110,000 Instruction Expense 7,000,000 Research Expense 4,500,000 Public Service Expense 1,200,000 Institutional Support Expense 700,000 Student Services Expense 150,000 Auxiliary Enterprise Expense 3,500,000 Net AssetsUnrestrictedUndesignated 980,000 RevenuesTemporarily RestrictedContributions 1,500,000 RevenuesTemporarily RestrictedGrants 950,000 Reclassifications From Temporarily Restricted Net AssetsSatisfaction of Program Restrictions 640,000 Reclassifications from Temporarily Restricted Net AssetsSatisfaction of Plant Acquisition Restrictions . . . 1,160,000 Net AssetsTemporarily Restricted 650,000 RevenuesPermanently RestrictedContributions 2,540,000 Gains on LongTerm Investments 750,000 Net AssetsPermanently Restricted 3,290,000

Assume the January 1, 2014, net asset balances are as follows: $1,000,000 unrestricted net assets $300,000 temporarily restricted net assets and $1,700,000 permanently restricted net assets.

a. Prepare a Statement of Activities using the format presented in Illustration 101. b. Prepare a Statement of Unrestricted Revenues, Expenses, and Other Changes in Unrestricted Net Assets together with a Statement of Changes in Net Assets.

Your paper must:

1. Include both the completed financial statements and detailed analysis of the data provided.
2. Explain the process by which you completed the final statements and include any applicable supporting information computations and explanations.
3. Offer an in-depth analysis of the financial health of Lee College.