The following trial balance as of January 1, 2017, the first day of the fiscal year for Ajman University:

Assets: Liabilities & Net assets:

Cash $ 2,530,000 Accounts payable $1,700,000

Accounts receivable 1,800,000 Accrued expenses 800,000

Contributions receivable 500,000 Allowance for uncollectible 120,000

Loans to employees 700,000 Long-term debt 2,880,000

Long-term investment 2,470,000 Unrestricted net assets 4,000,000

Plant assets Net 4,500,000 Temporarily restricted NA 2,000,000

Permanently restricted NA 1,000,000

Total Assets 12,500,000 Total Liabilities & Net Assets 12,500,000

During the year ended December 31, 2017, the following transactions occurred:

1. Cash collections included: accounts receivable, $800,000; contributions receivable, $300,000; and for loans to employees, $400,000.

2. Contributions were received in cash of the following amounts: unrestricted, $1,800,000; temporarily restricted, $1,300,000; permanently restricted, $900,000.

3. Unrestricted revenues included tuition and fees, $2,800,000; other investment income, $300,000; and sales and services of auxiliary enterprises, $4,700,000. A total of $5,000,000 in cash was received.

4. Expenses, were as follows: instruction, $1,000,000; research, $800,000; academic support, $400,000; and auxiliary enterprises, $500,000. The amount of $1,600,000 was paid in cash.

5. Cash payments included accounts payable, $700,000; and long-term debt, $380,000.

6. Scholarships, for which no services were required, were applied to student in the amount of $200,000.

7. Interest income was earned as addition to temporarily restricted net assets, $750,000. Of which, $600,000 was received in cash and the remaining was accrued at year-end.

8. Reclassifications of $ 400,000 was made from temporarily restricted to unrestricted net assets.

Required:

a. Prepare journal entries for the above transactions.

b. Prepare a Statement of Changes in Net Assets including a separate unrestricted part.

c. Prepare a Statement of Net Position for the Ajman University.