Question
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 | $ | 222,000 | ||||||
Accounts receivable (net of doubtful accounts of $12,000) | 297,000 | |||||||
Investments | 201,000 | |||||||
Capital assets | $ | 1,407,000 | ||||||
Accumulated depreciation | 222,000 | 1,185,000 | ||||||
Total assets | 1,905,000 | |||||||
Liabilities | ||||||||
Accounts payable | 82,000 | |||||||
Accrued liabilities | 32,000 | |||||||
Unearned revenue | 23,000 | |||||||
Bonds payable | 552,000 | |||||||
Total liabilities | 689,000 | |||||||
Net Position | ||||||||
Net investment in capital assets | 633,000 | |||||||
Restricted | 156,000 | |||||||
Unrestricted | 427,000 | |||||||
Total net position | $ | 1,216,000 | ||||||
The following information pertains to the year ended June 30, 2023:
South billed tuition and fees totaling $1,095,000 and provided $181,000 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 $37,000 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 $2,220,000 from the state.
Equipment for the student computer labs was purchased for cash in the amount of $393,000.
During the year, $601,000 in cash contributions was received from alumni. Of the amount contributed, $190,000 is to be used for construction of a new library.
Interest expense on the bonds payable in the amount of $37,000 was paid.
Student tuition refunds of $88,000 were made. Cash collections of tuition and fees totaled $1,135,000, $102,000 of which applied to the semester beginning in August 2023. Investment income of $9,000 was earned and collected during the year.
General expenses of $3,242,000 related to the administration and operation of academic programs, and research expenses of $27,000 related to the development of student performance measures, were recorded in the voucher system. At June 30, 2023, the accounts payable balance was $56,000.
Accrued liabilities at June 30, 2022, were paid.
At year-end, adjusting entries were made. Depreciation on capital assets totaled $67,000. The Allowance for Doubtful Accounts was adjusted to $15,000. Accrued interest on investments was $900. The fair value of investments at year-end was $215,000. Of the income earned on investments, $4,000 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.
b. Prepare a statement of net position for the year ended June 30, 2023.
Complete this question by entering your answers in the tabs below. Prepare a statement of net position for the year ended June 30, 2023. (Amounts to be deducted should be indicated with aStep by Step Solution
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