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The following is the preclosing trial balance for Allen University as of June 30, 2023. Additional information related to net assets and the statement of

The following is the preclosing trial balance for Allen University as of June 30, 2023. Additional information related to net assets and the statement of cash flows is also provided.

ALLEN UNIVERSITY
Preclosing Trial Balance
June 30, 2023
Debits Credits
Cash and Cash Equivalents $ 516,600
Investments 3,200,000
Tuition and Fees Receivable 372,400
Allowance for Doubtful Accounts $ 75,600
Pledges Receivable 223,000
Allowance for Doubtful Pledges 79,000
Property, Plant, and Equipment 2,196,160
Accumulated Depreciation 658,720
Accounts Payable 103,000
Accrued Liabilities 37,500
Deposits Held in Custody for Others 17,570
Deferred Revenue 62,150
Bonds Payable 792,000
Net AssetsWithout Donor Restrictions 3,353,110
Net AssetsWith Donor Restrictions 1,320,600
Net Assets Released from RestrictionsWith Donor Restrictions 426,850
Net Assets Released from RestrictionsWithout Donor Restrictions 426,850
Tuition and Fees 1,290,750
Tuition and Fees Discount and Allowances 327,000
ContributionsWithout Donor Restrictions 310,200
ContributionsWith Donor Restrictions 327,000
Grants and ContractsWith Donor Restrictions 324,000
Investment IncomeWithout Donor Restrictions 50,500
Investment IncomeWith Donor Restrictions 29,500
Other Revenue 13,250
Auxiliary Enterprise Sales and Services 153,560
Gain on Sale of Investments 70,000
Unrealized Gain on Investments 179,200
Instruction Expense 1,044,630
Research Expense 571,800
Academic Support Expense 240,560
Student Services Expense 193,000
Institutional Support Expense 203,360
Auxiliary Enterprise Expenses 158,700
Total $ 9,674,060 $ 9,674,060

Additional Information Net assets released from donor restrictions totaled $426,850. The gain resulting from sale of investments was unrestricted. Thirty 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, 2022, was $615,540.
  • Tuition and Fees Receivable increased by $10,230.
  • Pledges Receivable decreased by $1,560.
  • Allowance for Doubtful Accounts was increased by $770 (the bad debt increased Institutional Support Expense).
  • Accounts Payable decreased by $2,900.
  • Accrued Liabilities decreased by $1,120.
  • Deferred Revenue increased by $6,200.
  • Depreciation Expense was $30,070.
  • Cash of $100,000 was used to retire bonds.
  • Investments were sold for $1,500,000 (at a gain of $70,000) and others were purchased for $1,250,000.
  • Net assets without donor restrictions were used to purchase equipment at a cost of $33,000.

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