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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

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 $ 519,100
Investments 3,217,000
Tuition and Fees Receivable 374,100
Allowance for Doubtful Accounts $ 75,940
Pledges Receivable 224,020
Allowance for Doubtful Pledges 79,340
Property, Plant, and Equipment 2,205,630
Accumulated Depreciation 661,560
Accounts Payable 103,460
Accrued Liabilities 40,010
Deposits Held in Custody for Others 18,730
Unearned Revenue 66,250
Bonds Payable 845,000
Net AssetsWithout Donor Restrictions 3,220,260
Net AssetsWith Donor Restrictions 1,408,300
Net Assets Released from RestrictionsWith Donor Restrictions 455,000
Net Assets Released from RestrictionsWithout Donor Restrictions 455,000
Tuition and Fees 1,292,990
Tuition and Fees Discount and Allowances 327,600
ContributionsWithout Donor Restrictions 312,690
ContributionsWith Donor Restrictions 331,940
Grants and ContractsWith Donor Restrictions 326,510
Investment IncomeWithout Donor Restrictions 52,880
Investment IncomeWith Donor Restrictions 31,000
Other Revenue 13,600
Auxiliary Enterprise Sales and Services 157,700
Gain on Sale of Investments 71,700
Unrealized Gain on Investments 419,140
Instruction Expense 1,075,430
Research Expense 616,700
Academic Support Expense 275,560
Student Services Expense 232,700
Institutional Support Expense 256,760
Auxiliary Enterprise Expenses 204,400
Total $ 9,984,000 $ 9,984,000

Additional Information

Net assets released from donor restrictions totaled $455,000. 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 $796,620.
  • Tuition and Fees Receivable increased by $12,670.
  • Pledges Receivable decreased by $1,940.
  • Allowance for Doubtful Accounts was increased by $940 (the bad debt was netted against Tuition and Fees).
  • Accounts Payable decreased by $3,580.
  • Accrued Liabilities decreased by $1,410.
  • Unearned Revenue increased by $7,820.
  • Depreciation Expense was $37,880.
  • Cash of $138,000 was used to retire bonds.
  • Investments were sold for $2,070,000 (at a gain of $71,700) and others were purchased for $1,725,000.
  • Net assets without donor restrictions were used to purchase equipment at a cost of $45,600.
  1. Make a statement of financial position for June 30, 2020.
ALLEN UNIVERSITY
Statement of Financial Position
June 30, 2020
Assets
Cash and Cash Equivalents $519,100
Tuition and Fees Receivable (Net)
ContributionsWith Donor RestrictionsGrants
Investments
Property, Plant and Equipment (Net)
Total Assets $519,100
Liabilities and Net Assets
Liabilities:
Accounts Payable
Accrued Liabilities
Deposits Held in Custody for Others
Unearned Revenue
Bonds Payable
Total Liabilities 0
Net Assets:
Net AssetsWithout Donor Restrictions
Net AssetsWith Donor Restrictions
Total Net Assets 0
Total Liabilities and Net Assets $0

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