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Presented below are the closing entries for Lee College, a private not-for-profit, for the year ended December 31, 2012. Debits Credits Revenues-Unrestricted-Tuition & Fees $11,200,000
Presented below are the closing entries for Lee College, a private not-for-profit, for the year ended December 31, 2012. Debits Credits Revenues-Unrestricted-Tuition & Fees $11,200,000 Revenue-Unrestricted-Unrestricted Income on Endowment investment 40,000 Revenue-Unrestricted-Sales & Service of Auxiliary Enterprises 5,000,000 Revenues-Unrestricted-Contributions 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 Discount-Unrestricted-Student 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 Service Expense 150,000 Auxiliary Enterprise Expense 3,500,000 Net Assets-Unrestricted-Undesignated 980,000 Revenues-Temporarily Restricted-Contributions 1,500,000 Revenues-Temporarily Restricted-Grants 950,000 Reclassification from Temporarily Restricted Net Assets-Satisfaction of Program Restrictions 640,000 Reclassification from Temporarily Restricted Net Assets-Satisfaction of Plant Acquisition Restrictions 1,160,000 Net Assets-Temporarily Restricted 650,000 Revenues-Permanently Restricted-Contributions 2,540,000 Gains on Long Term Investments 750,000 Net Assets-Permanently Restricted 3,290,000 Assume the January 1, 2012, 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 10-1. B. Prepare a Statement of Unrestricted Revenues, Expenses, and Other Changes in Unrestricted Net Assets together with a Statement of Changes in Net assets. Complete Exercise 11-8, preparing the statements described in parts a and b. Explain the process by which you completed the final statements. Offer your opinion and analysis of the data in answer to the question: "What is the financial health of Lee College
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