The Statement of Net Position of South State University, a governmentally owned university, as of the end of its fiscal year June 30, 2016, follows.

SOUTH STATE UNIVERSITY
Statement of Net Position
June 30, 2016
Assets
Cash					$	341,000
Accounts receivable (net of doubtful accounts of $16,000)						395,000
Investments						267,000
Capital assets	$	1,869,000
Accumulated depreciation		294,000				1,575,000
Total assets						2,578,000
Liabilities
Accounts payable						111,000
Accrued liabilities						42,000
Unearned revenue						26,000
Bonds payable						624,000
Total liabilities						803,000
Net Position
Net investment in capital assets						951,000
Restricted						191,200
Unrestricted						632,800
Total net position					$	1,775,000

The following information pertains to the year ended June 30, 2017:

1.	South billed tuition and fees totaling $1,599,000 and provided $267,000 in scholarship waivers.
2.	Unearned revenue at June 30, 2016, was earned during the year ended June 30, 2017.
3.	Notification was received from the federal government that up to $53,000 in funds could be received in the current year for costs incurred in developing student performance measures.
4.	During the year, the University received an unrestricted appropriation of $3,180,000 from the state.
5.	Equipment for the student computer labs was purchased for cash in the amount of $557,000.
6.	During the year, $849,000 in cash contributions was received from alumni. Of the amount contributed $230,000 is to be used for construction of a new library.
7.	Interest expense on the bonds payable in the amount of $51,000 was paid.
8.	Student tuition refunds of $120,000 were made. Cash collections of tuition and fees totaled $1,549,000, $147,000 of which applied to the semester beginning in August 2017. Investment income of $14,000 was earned and collected during the year.
9.	General expenses of $5,044,000 related to the administration and operation of academic programs, and research expenses of $40,000 related to the development of student performance measures were recorded in the voucher system. At June 30, 2017, the accounts payable balance was $81,000.
10.	Accrued liabilities at June 30, 2016, were paid.
11.	At year-end, adjusting entries were made. Depreciation on capital assets totaled $97,000. The Allowance for Doubtful Accounts was adjusted to $18,000. Accrued interest on investments was $1,300. The fair value of investments at year-end was $278,000. Of the income earned on investments, $5,500 was restricted.
12.	Nominal accounts were closed and net position amounts were reclassified as necessary.

a-1.	Prepare journal entries to record the foregoing transactions for the year ended June 30, 2017. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

• 1 Record the tuition and fees receivable, the waivers and scholarships.

• 2 Record the unearned revenue for the year.

• 3 Record the entry for grants due from the Federal Government for student performance measures.

• 4 Record the receipt of unrestricted appropriation from the state.

• 5 Record the purchase of equipment.

• 6 Record the receipt of contributions from alumni.

• 7 Record the payment of interest on the bonds.

• 8 Record the refund of tuition and fees.

• 9 Record the receipt of balance tuition and fees and interest income for the year.

• 10 Record the general expenses incurred during the year.

• 11 Record the general expenses paid during the year.

• 12 Record the expenses related to the development of student performance measure.

• 13 Record the accrued liabilities paid during the year.

• 14 Record the adjustment required for bad debts.

• 15 Record the depreciation entry for the year.

• 16 Record the interest accrued on investments for the year.

• 17 Record the increase in fair value of investments.

a-2.	Prepare closing entries for the year ended June 30, 2017. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

• 1 Record the closure of all nominal accounts.

• 2 Record the entry to reclassify the net investment in capital assets.

• 3 Record the entry to reclassify Net position-Restricted.

Transcribed image text: b. Prepare a statement of net position for the year ended June 30, 2017. (Negative amounts should be indicated by a minus sign.) SOUTH STATE UNIVERSITY Statement of Net Position June 30, 2017 Assets Total Assets Liabilities Total Liabilities Net Position Total Net Position S 01