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 Accounts receivable (net of doubtful accounts of $15,000) Investments Capital assets Accumulated depreciation S 340,000 370,000 250, 000 $1,750,000 275,000 1,475,000 2,435, 000 Total assets Liabilities Accounts payable Accrued liabilities Unearned revenue Bonds payable 105, 000 40,000 25,000 600,000 770,000 Total liabilities Net Position Net investment in capital assets Restricted Unrestricted 875,000 215,000 575,000 S1,665,000 Total net position The following information pertains to the year ended June 30, 2020 1. South billed tuition and fees totaling $1,500,000 and provided $250,000 in scholarship waivers 2. Unearned revenue at June 30, 2019, was earned during the year ended June 30, 2020 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 2020. 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, 2020, the accounts payable balance was $75,000 10. Accrued liabilities at June 30, 2019, were paid 0. Accrued liabilities at June 30, 2019, 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. 2. 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, 2020, (if no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Answer is not complete Debit 1,250,000 250,000 0 Transaction General Journal Credit 01 Accounts Receivable-Tuition and Fees Tuition and Fees Discount and Allowances Revenues-luition and Fees 1,500,000 02 Unearned Revenue 25,000 Revenues-Tuition and Fees 25,000 03 No Journal Entry Required 04 Cash 3,000,000 Revenues-State Appropriations 3,000,000 05 Capital Assets 525,000 Cash 525,000 06 Cash 800,000 Revenues-Gifts and Grants 800,000 07 Expenses-Interest 48,000 Cash 48,000 8(a) Revenues-Tuition and Fees 113,000 Cash 113,000 8(b) Expenses-General 4,684,000 Expenses-Research 37,000 Cash 4,721,000 9(a) Accounts Payable 75,000 Cash 4,751,000 9(b) 75,000 105,000 9(c) Grant Receivable 37,000 Revenues-Gifts and Grants 37,000 10 Accrued Liabilities 40,000 Cash 40,000 11(a) Provision for Bad Debts 2,000 Allowance for Doubtful accounts 2,000 11(b) Expenses-Depreciation 90,000 Accumulated Depreciation 90,000 11(c) Interest Receivable 1,250 Revenues-Investment Income 1,250 11(d) Investments 12,000 Revenues-Changes in Fair Value of Investments 12,000 b. Prepare a statement of net position for the year ended June 30, 2020. (Amounts to be deducted should be indicated with a minus sign.) Answer is complete but not entirely correct SOUTH STATE UNIVERSITY Statement of Net Position June 30, 2020 Assets Cash Accounts Receivable Interest Receivable Grant Receivable Investments Capital Assets Less: Accumulated Depreciation S 134,700 297,300 1,250 37,000 262,000 $ 2,275,000 (365,000),910,000 2,642,250 Total Assets Liabilities Accounts Payable Unearned Revenu Bonds Payable 75,000 138,000 600,000 Total Liabilities $ 813,000 Net Position Net Investment in Capital Assets Net Assets-With Donor Restrictions Net Assets-Without Donor Restrictions 1,310,000 420,230 99,020 Total Net Position $ 1,829,250 a-2. Prepare 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.) Answer is not complete Transaction General Journal Debit 1,412,000 3,000,000 837,000 12,000 14,250 0 Credit 12(a) Revenues-luition and Fees Revenues-State Appropriations Revenues-Gifts and Grants Revenues-Changes in Fair Value of Investments Revenues-Investment Income Tuition and Fees Discount and Allowances Expenses-Depreciaion Provision for Bad Debts Expenses-Interest Expenses-General Expenses-Research Net Position-Unrestricted 250,000 90,000 2,000 48,000 4,684,000 37,000 164,250 12(b) Net Position-Unrestricted 435,000 Net Position-Net Investment in Capital Assets 435,000 12(c) Net Position-Unrestricted 435,000 Net Position-Restricted