Question
Steiner Colleges statement of financial position for the year ended June 30, 2016, is presented here. Steiner is a private college. STEINER COLLEGE Statement of
Steiner Colleges statement of financial position for the year ended June 30, 2016, is presented here. Steiner is a private college.
STEINER COLLEGE | ||
Statement of Financial Position | ||
June 30, 2016 | ||
(amounts in thousands) | ||
Assets | ||
Cash and cash equivalents | 734 | |
Short-term investments | 7666 | |
Tuition and fees receivable (net of doubtful accounts of $12) | 230 | |
Pledges receivable (net of doubtful accounts of $280) | 5872 | |
Prepaid assets | 1364 | |
Property, plant and equipment (net of accumulated depreciation of $104,240) | 281404 | |
Investments (at fair value, cost of $162,000) | 158400 | |
Total assets | 455670 | |
Liabilities and Net Assets | ||
Liabilities | ||
Accounts payable and accrued liabilities | 21130 | |
Deposits held in custody for others | 700 | |
Unearned revenue | 900 | |
Bonds payable | 99000 | |
Total liabilities | 121730 | |
Net Assets: | ||
Unrestricted | 104000 | |
Temporarily restricted | 33040 | |
Permanently restricted | 196900 | |
Total net assets | 333940 | |
Total liabilities and net assets | 455670 |
The following transaction information (amounts in thousands) pertains to the year ended June 30, 2017.
1. During the year charges for tuition and fees were $244,500; scholarships were $16,300; And tuition waivers for scholastic achievement were $5,100. After payment was received tuition refunds of $11,200 were given. Tuition waiver of $17,300 for students serving as teaching assistants for instruction were accrued.
2. The college received unrestricted cash contributions of $2,080, pledges to be collected in 2018 of $550, and cash contributions to the endowments of $335. It also collected $820 of Pledges Receivable that were unrestricted.
3. Collections on Tuition and Fees Receivable totaled $222,600.
4. Net deposits returned to students totaled $10.
5. Expenses were incurred for: Instruction $ 86,100. Academic support 23,300. Student services 37,700. Institutional support 28,500. Related to the expenses incurred: prepaid assets of $534 were used, $4,776 of the expenses were accrued, and the remaining expenses were paid. Expenses incurred resulted in the release of $7,320 in temporarily restricted net assets.
6. The ending balance in Accounts Payable and Accrued Liabilities was 1,935
7. Investment earnings received for the period were $3,960, of which $2,070 was temporarily restricted.
8. Adjusting entries for the period were made to increase Allowance for Doubtful Accounts by $20, to record depreciation expense of $26,400 (charged 70 percent to instruction and 30 percent to academic support), to adjust tuition revenue for an increase in unearned revenue of $10, and to recognize an increase in fair value of investments of $4,700 ($790 was related to temporarily restricted net assets, $1,610 was related to permanently restricted net assets, the remainder was related to unrestricted net assets).
9. Nominal accounts were closed.
A- Prepare journal entries to record the foregoing transactions for the year ended June 30, 2017.
B- prepare a statement of activities for the year ended June, 30, 2017
C-prepare a statement of financial position for the year ended June 30, 2017
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