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, 2022, 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, 2022, follows.
SOUTH STATE UNIVERSITY | ||||||
Statement of Net Position | ||||||
June 30, 2022 | ||||||
Assets | ||||||
Cash | $ | 340,000 | ||||
Accounts receivable (net of doubtful accounts of $15,000) | 370,000 | |||||
Investments | 250,000 | |||||
Capital assets | $ | 1,750,000 | ||||
Accumulated depreciation | 275,000 | 1,475,000 | ||||
Total assets | 2,435,000 | |||||
Liabilities | ||||||
Accounts payable | 105,000 | |||||
Accrued liabilities | 40,000 | |||||
Unearned revenue | 25,000 | |||||
Bonds payable | 600,000 | |||||
Total liabilities | 770,000 | |||||
Net Position | ||||||
Net investment in capital assets | 875,000 | |||||
Restricted | 215,000 | |||||
Unrestricted | 575,000 | |||||
Total net position | $ | 1,665,000 | ||||
The following information pertains to the year ended June 30, 2023:
- South billed tuition and fees totaling $1,500,000 and provided $250,000 in scholarship waivers.
- Unearned revenue at June 30, 2022, was earned during the year ended June 30, 2023.
- Notification was received from the federal government that up to $50,000 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 $3,000,000 from the state.
- Equipment for the student computer labs was purchased for cash in the amount of $525,000.
- During the year, $800,000 in cash contributions was received from alumni. Of the amount contributed, $200,000 is to be used for construction of a new library.
- Interest expense on the bonds payable in the amount of $48,000 was paid.
- Student tuition refunds of $113,000 were made. Cash collections of tuition and fees totaled $1,458,700, $138,000 of which applied to the semester beginning in August 2023. Investment income of $13,000 was earned and collected during the year.
- General expenses of $4,684,000 related to the administration and operation of academic programs, and research expenses of $37,000 related to the development of student performance measures, were recorded in the voucher system. At June 30, 2023, the accounts payable balance was $75,000.
- Accrued liabilities at June 30, 2022, were paid.
- At year-end, adjusting entries were made. Depreciation on capital assets totaled $90,000. The Allowance for Doubtful Accounts was adjusted to $17,000. Accrued interest on investments was $1,250. The fair value of investments at year-end was $262,000. Of the income earned on investments, $5,230 was restricted.
- Nominal accounts were closed and net position amounts were reclassified as necessary.
Required a-1. Prepare journal entries to record the foregoing transactions for the year ended June 30, 2023.
- a-2. Prepare closing entries for the year ended June 30, 2023.
- Prepare a statement of net position for the year ended June 30, 2023.
Step 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