Question
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.
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 | $ | 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, 2017: |
1. | South billed tuition and fees totaling $1,500,000 and provided $250,000 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 $50,000 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 $3,000,000 from the state. |
5. | Equipment for the student computer labs was purchased for cash in the amount of $525,000. |
6. | 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. |
7. | Interest expense on the bonds payable in the amount of $48,000 was paid. |
8. | 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 2017. Investment income of $13,000 was earned and collected during the year. |
9. | 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, 2017, the accounts payable balance was $75,000. |
10. | Accrued liabilities at June 30, 2016, were paid. |
11. | 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. |
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.) |
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