Problem 5. The statement of financial position of Washbush Private University as of end of its fiscal year, June 30, 2015, is as follows: Washbush Private University Statement of Financial Position For Year Ended June 30, 2015 Assets Liabilities and Net Assets Cash ||$257,000 Accounts payable $40,000 Accounts receivable student tuition and fees Deferred revenues 66,000 less allowance for doubtful accounts of 311,000 Long-term debt 100,000 $9,000 Total liabilities $206,000 Il Net assets: State appropriations receivable 75,000||Unrestricted ||$487,000 Endowment investments 50,000 Temporarily restricted TL 40,000 [Property, plant, and equipment (net) 90,000 | Permanently restricted 50,000 Total assets $783,000 Total net assets ||$577,000 Total liabilities and net assets $783,000 The following transactions occurred during the fiscal ya 30, 2016: ed during the fiscal year ended June n e department and the remainder be hently restricted endowment. The On July 7, 2015 gift of con c eived from an alumnus. alumnus requested that one-half of the gift be used for the pur equipment for the university athletic department and the remainde used for the establishment of a permanently restricted endowment. alumnus further requested that the income generated by the endowment be used annually to award a scholarship to a qualified disadvantaged student. On July 20, 2015, the board of trustees resolved that the funds the board of trustees resolved that the funds of the newly established endowment would be invested in savings certificates. On July 21, 2015, the savings certificates were purchased. D. Revenues from student tuition and fees applicable to the year ended June 30, 2016, amounted to $1,900,000. Of this amount, $66,000 was or year, and $1,686,000 was collected during the year ended June 30, 2016. In additionat lune 30 2016 the university had received cash of $158,000 representing fees for the session beginning eginning July 1, 2016. c. During the year ended June 30, 2016. the university had collected 3308,000 of the outstanding accounts receivable at the beginning of the year. The remainder was determined to be uncollectible and was written off against the allowance account. At June 30, 2016, the allowance account was adjusted to $6,000. d. During the year, interest charges of $6,000 were earned and collected on late student fee payments. e. During the year, the state appropriation was received. An additional unrestricted appropriation of $40,000 was made by the state, but it had not been paid to the university as of June 30, 2016. f. A gift of $30,000 cash restricted was received from alumni of the university for economic research expenses. g. During the year, endowment investments that cost $21,000 were sold for $24,000. This includes accrued investment income amounting to $1,900. All income was restricted for programs to enhance teaching effectiveness. h. During the year, unrestricted operating expenses of $1,800,000 were recorded. They include the following: Instruction $500,000 Research 400.000 Institutional support 100,000 Student aid 100.000 Student services 200,000 Operation and maintenance of 500,000 plant Total $1,800.000 At June 30, 2016, $60,000 of these expenses remained unpaid. i. Temporarily restricted funds of $13,000 were spent for specified onomic research described in item (f). The accounts payable at June 30, 2015, were paid during the year k. During the year, $7,000 interest was earned and received on the savings certificates purchased in item (a). 1. In honor of its 25th anniversary. Washbush Private University conducted a fund drive. Contributions of $16,000 were received Additional unconditional pledges of $14.000 were promised for payment in December 2016. It is anticipated that $2,000 of the pledges will be uncollectible. Instructions 1. Prepare journal entries to record the transactions. Assume fund accounting is not used. 2. Prepare a statement of activities for the year ended June 30, 2016, using a column for each of the three net asset classifications and a total column. 3. Prepare a statement of financial position for the year ended June 30, 2016