Open University is a private with a registered charitable status organization. It had the following balance sheet as of 31/12/2013. Balance sheet at 31/12/2013 Assets Liab. & Net Assets Cash 2000000 AP & Accruals 800000 Student loans 500000 Deposits held in custody for others 200000 Tuition receivable 200000 Deferred tuition revenues 200000 Pledges receivables 300000 Payables of annuity agreements 400000 Lg. Tm Investments 500000 Liab. Total 1600000 Supplies inventory 100000 Net Assets Lands 1000000 1.Unrestricted 2400000 Building & Equipment 4000000 2. Temp. Restricted for research 2400000 Accumulated Depreciation 10% SLN (1200000) 3. Perm. Restricted 1000000 Net Building & Equipment 2800000 Net Assets total 5800000 Total Assets 7400000 Total Liab.& Net Assets 7400000 Required: Record Journal entries for all the following events and closing entries as well. Then prepare the financial statement of net activities as of 31/12/2014. 1. Cash revenues of unrestricted investment income $30000, and temporarily restricted investment income of $20000, as well as unrestricted auxiliary enterprise revenues of $400000 in cash. 2. Accrued receivable tuition revenues of $700000, unrestricted government grant of $200000, as well as temporarily restricted pledges from private organization of $300000 for research purposes. 3. Total of $150000 of scholarships and waiveries as well as a total of $50000 of student loans granted for students and reduced directly from receivable tuitions, while a total of $ 10000 of bad tuitions directly reduced from tuition receivables. 4. A total of 150000$ of de ferred tuition revenues are accrued and recognized as unrestricted tuition revenues. Furthermore, a total of $100000 received in cash for tuition fees of next year. 5. List of Expenses incurred during the year are presented as follows: Item Cost Academic instruction expenses 200000 Academic support expense of 100000 Student support services expenses 20000 General and admin expenses 130000 Total direct expenses 450000 All expenses are accrued AP & Accruals while only $30000 of the general and admin expenses is withdrawn from supplies inventory. However, further purchases of supplies inventory of $10000 are made during the year and yet unsettled. 6. Cash collections of tuition receivables of $550000, government grants of $200000, and pledges receivables of $400000. Collections of student loans amounted to $220000 out of which $20000 are unrestricted interest revenues. However, repayments for AP & Accruals of $1000000, deposits held in custody for others of $100000, and payables of annuity agreements of $250000. 7. Cash collected under annuity agreements of $200000 out of which $150000 are contributions to be held in perpetuity by investing it in risk-free securities (the periodic interest revenues are determined for unrestricted use) and the remaining balance is payables under annuity agreements. 8. Capital expenditures on new laboratory building and research equipment of $1400000 are made during the year (net asset release is needed). While periodic research expenses of $100000 were incurred. However both amounts are unpaid AP & Accruals. 9. Depreciation expenses are 10% SLN method on the historical values of Building and Equipment. Open University is a private with a registered charitable status organization. It had the following balance sheet as of 31/12/2013. Balance sheet at 31/12/2013 Assets Liab. & Net Assets Cash 2000000 AP & Accruals 800000 Student loans 500000 Deposits held in custody for others 200000 Tuition receivable 200000 Deferred tuition revenues 200000 Pledges receivables 300000 Payables of annuity agreements 400000 Lg. Tm Investments 500000 Liab. Total 1600000 Supplies inventory 100000 Net Assets Lands 1000000 1.Unrestricted 2400000 Building & Equipment 4000000 2. Temp. Restricted for research 2400000 Accumulated Depreciation 10% SLN (1200000) 3. Perm. Restricted 1000000 Net Building & Equipment 2800000 Net Assets total 5800000 Total Assets 7400000 Total Liab.& Net Assets 7400000 Required: Record Journal entries for all the following events and closing entries as well. Then prepare the financial statement of net activities as of 31/12/2014. 1. Cash revenues of unrestricted investment income $30000, and temporarily restricted investment income of $20000, as well as unrestricted auxiliary enterprise revenues of $400000 in cash. 2. Accrued receivable tuition revenues of $700000, unrestricted government grant of $200000, as well as temporarily restricted pledges from private organization of $300000 for research purposes. 3. Total of $150000 of scholarships and waiveries as well as a total of $50000 of student loans granted for students and reduced directly from receivable tuitions, while a total of $ 10000 of bad tuitions directly reduced from tuition receivables. 4. A total of 150000$ of de ferred tuition revenues are accrued and recognized as unrestricted tuition revenues. Furthermore, a total of $100000 received in cash for tuition fees of next year. 5. List of Expenses incurred during the year are presented as follows: Item Cost Academic instruction expenses 200000 Academic support expense of 100000 Student support services expenses 20000 General and admin expenses 130000 Total direct expenses 450000 All expenses are accrued AP & Accruals while only $30000 of the general and admin expenses is withdrawn from supplies inventory. However, further purchases of supplies inventory of $10000 are made during the year and yet unsettled. 6. Cash collections of tuition receivables of $550000, government grants of $200000, and pledges receivables of $400000. Collections of student loans amounted to $220000 out of which $20000 are unrestricted interest revenues. However, repayments for AP & Accruals of $1000000, deposits held in custody for others of $100000, and payables of annuity agreements of $250000. 7. Cash collected under annuity agreements of $200000 out of which $150000 are contributions to be held in perpetuity by investing it in risk-free securities (the periodic interest revenues are determined for unrestricted use) and the remaining balance is payables under annuity agreements. 8. Capital expenditures on new laboratory building and research equipment of $1400000 are made during the year (net asset release is needed). While periodic research expenses of $100000 were incurred. However both amounts are unpaid AP & Accruals. 9. Depreciation expenses are 10% SLN method on the historical values of Building and Equipment