PROBLEM 19-3 Various FundsUniversity A partial statement of financial position of Century University is shown below. Century University Partial Statement of Financial Position June 30, 2011 Assets Current Funds Unrestricted Cash $210,000 Accounts Receivable (less allowance for doubtful accounts, $9,000) 341,000 State Appropriations Receivable 75,000 Total Unrestricted 626,000 Restricted Cash 7,000 Investments 60,000 Total Restricted 67,000 Total Current $693,000 Liabilities and Fund Balances Current Funds Unrestricted Accounts Payable $ 45,000 Deferred Revenues 66,000 Fund Balance 515,000 Total Unrestricted 626,000 Restricted Fund Balance 67,000 Total Restricted 67,000 Total Current $693,000

During the fiscal year ended June 30, 2008, the following transactions occurred: 1. A gift of $100,000 was received from an alumnus on July 7, 2011. One-half of the gift was to be used for the purchase of books for the universitys library and the rest was to be used to establish a scholarship fund per the alumnuss request. It was also requested that the income generated by the scholarship fund be awarded annually as a scholarship for a qualified disadvantaged student. The board decided that the funds for the new scholarship should be invested in savings certificates on July 20, 2011. These savings certificates were purchased on July 21, 2011. 2. Revenue for the fiscal period from student tuition and fees amounted to $1,900,000. During the fiscal year, $1,686,000 of this amount was collected; $66,000 had been collected in the prior year. The university had also received $158,000 by June 30, 2012, for fees for the session beginning July 1, 2012. 3. During the year ended June 30, 2012, the university collected $349,000 of the outstanding accounts receivable at the beginning of the year. The balance was determined to be uncollectible and was written off against the allowance account. At June 30, 2012, the allowance account was increased by $3,000. 4. Because of late student fee payments, $6,000 in interest charges were earned and collected. 5. The state appropriation was received. Another unrestricted appropriation of $50,000 was made by the state. This had not been paid to the university by the fiscal year-end. 6. An unrestricted gift of $25,000 cash was received from alumni of the university. 7. During the year, investments of $21,000 were sold for $26,000. Investment income amounting to $1,900 was received. 8. Unrestricted operating expenses were recorded at $1,777,000, $59,000 of which remains unpaid. 9. Restricted current funds of $13,000 were spent for authorized purposes during the year. 10. The accounts payable at June 30, 2011, were paid during the year. 11. During the year, $7,000 interest was earned and received on the savings certificates purchased in accordance with the boards resolution [in item (1)]. Required: A. Prepare journal entries to record in summary form the transactions above for the year ended June 30, 2012. Each journal entry should be numbered to correspond with the transaction described above. Set up the following headings: Current Funds Unrestricted Restricted Endowment Fund Accounts Dr. Cr. Dr. Cr. Dr. Cr. B. Prepare a statement of activities for the year ended June 30, 2012. C. Prepare a statement of activities for the current funds for the year ended June 30, 2012. Include more details about the revenues and expenses.