Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The Statement of Net Position of South State University, a government-owned university, as of the end of its fiscal year June 30, 2019, follows. SOUTH
The Statement of Net Position of South State University, a government-owned university, as of the end of its fiscal year June 30, 2019, follows.
SOUTH STATE UNIVERSITY | ||||||||
Statement of Net Position | ||||||||
June 30, 2019 | ||||||||
Assets | ||||||||
Cash | $ | 265,000 | ||||||
Accounts receivable (net of doubtful accounts of $9,000) | 222,000 | |||||||
Investments | 150,000 | |||||||
Capital assets | $ | 1,050,000 | ||||||
Accumulated depreciation | 165,000 | 885,000 | ||||||
Total assets | 1,522,000 | |||||||
Liabilities | ||||||||
Accounts payable | 65,000 | |||||||
Accrued liabilities | 26,000 | |||||||
Unearned revenue | 18,000 | |||||||
Bonds payable | 432,000 | |||||||
Total liabilities | 541,000 | |||||||
Net Position | ||||||||
Net investment in capital assets | 453,000 | |||||||
Restricted | 112,000 | |||||||
Unrestricted | 416,000 | |||||||
Total net position | $ | 981,000 | ||||||
The following information pertains to the year ended June 30, 2020:
- South billed tuition and fees totaling $883,000 and provided $147,000 in scholarship waivers.
- Unearned revenue at June 30, 2019, was earned during the year ended June 30, 2020.
- Notification was received from the federal government that up to $30,000 in funds could be received in the current year for costs incurred in developing student performance measures.
- During the year, the University received an unrestricted appropriation of $1,800,000 from the state.
- Equipment for the student computer labs was purchased for cash in the amount of $318,000.
- During the year, $486,000 in cash contributions was received from alumni.Of the amount contributed, $130,000 is to be used for construction of a new library.
- Interest expense on the bonds payable in the amount of $30,000 was paid.
- Student tuition refunds of $71,000 were made. Cash collections of tuition and fees totaled $917,000, $83,000 of which applied to the semester beginning in August 2020. Investment income of $6,000 was earned and collected during the year.
- General expenses of $2,161,000 related to the administration and operation of academic programs, and research expenses of $18,000 related to the development of student performance measures, were recorded in the voucher system. At June 30, 2020, the accounts payable balance was $37,000.
- Accrued liabilities at June 30, 2019, were paid.
- At year-end, adjusting entries were made. Depreciation on capital assets totaled $44,000. The Allowance for Doubtful Accounts was adjusted to $11,000. Accrued interest on investments was $600. The fair value of investments at year-end was $158,000. Of the income earned on investments, $2,900 was restricted.
- Nominal accounts were closed and net position amounts were reclassified as necessary.
a-2. Make closing entries for the year ended June 30, 2020.(If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
- - - - - Tuition and Fees Discount and Allowances - - - - - - Net PositionUnrestricted - _ - - - Net PositionRestrictedStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started