Required information

Skip to question

[The following information applies to the questions displayed below.]

The following is the preclosing trial balance for Allen University as of June 30, 2020. Additional information related to net assets and the statement of cash flows is also provided.

ALLEN UNIVERSITY
Preclosing Trial Balance
June 30, 2020
	Debits			Credits
Cash and Cash Equivalents	$	517,280
Investments		3,205,000
Tuition and Fees Receivable		372,900
Allowance for Doubtful Accounts				$	75,700
Pledges Receivable		223,300
Allowance for Doubtful Pledges					79,100
Property, Plant, and Equipment		2,198,940
Accumulated Depreciation					659,550
Accounts Payable					103,130
Accrued Liabilities					38,260
Deposits Held in Custody for Others					17,920
Unearned Revenue					63,390
Bonds Payable					807,000
Net AssetsWithout Donor Restrictions					3,306,370
Net AssetsWith Donor Restrictions					1,345,000
Net Assets Released from RestrictionsWith Donor Restrictions		434,600
Net Assets Released from RestrictionsWithout Donor Restrictions					434,600
Tuition and Fees					1,291,450
Tuition and Fees Discount and Allowances		327,300
ContributionsWithout Donor Restrictions					310,730
ContributionsWith Donor Restrictions					328,220
Grants and ContractsWith Donor Restrictions					324,660
Investment IncomeWithout Donor Restrictions					51,030
Investment IncomeWith Donor Restrictions					29,800
Other Revenue					13,300
Auxiliary Enterprise Sales and Services					154,100
Gain on Sale of Investments					70,200
Unrealized Gain on Investments					221,960
Instruction Expense		1,049,730
Research Expense		577,600
Academic Support Expense		245,760
Student Services Expense		197,200
Institutional Support Expense		211,360
Auxiliary Enterprise Expenses		164,500
Total	$	9,725,470		$	9,725,470

Additional Information

Net assets released from donor restrictions totaled $434,600. The gain resulting from sale of investments was unrestricted. Twenty percent of the unrealized gain is related to net assets restricted for programs, with the remainder related to net assets without donor restrictions.

Additional information is as follows:

• The balance in cash and cash equivalents as of July 1, 2019, was $633,690.
• Tuition and Fees Receivable increased by $10,820.
• Pledges Receivable decreased by $1,660.
• Allowance for Doubtful Accounts was increased by $820 (the bad debt was netted against Tuition and Fees).
• Accounts Payable decreased by $3,100.
• Accrued Liabilities decreased by $1,200.
• Unearned Revenue increased by $6,650.
• Depreciation Expense was $32,240.
• Cash of $109,000 was used to retire bonds.
• Investments were sold for $1,635,000 (at a gain of $70,200) and others were purchased for $1,362,500.
• Net assets without donor restrictions were used to purchase equipment at a cost of $36,000.

1. Prepare a statement of financial position for June 30, 2020.

Required informution Required information iona manes Liablities and Net Assets Linbirines