Unit 5 Assignment 2 Accounting for the Federal Government" 15-17: Private College Transactions Steiner Colleges statement of financial position for the year ended June 30, 2016, is presented below. Steiner is a private college. Table 1. Statement of Financial Position. "Steiner College Statement of Financial Position June 30, 2016 (amounts in thousands)" Account Debits Credits "Assets Cash and cash equivalents" No data. $734 Short-term investments No data. 7,666 Tuition and fees receivable (net of doubtful accounts of $12) No data. 230 Pledges receivable (net of doubtful accounts of $280) No data. 5,872 Prepaid assets No data. 1,364 Property, plant, and equipment (net of accumulated depreciation of $104,240) No data. 281,404 Investments (at fair value, cost of $162,000) No data. 158,400 Total assets No data. $455,670 "Liabilities and Net Assets Liabilities: Accounts payable and accrued liabilities" No data. $21,130 Deposits held in custody for others No data. 700 Unearned revenue No data. 900 Bonds payable No data. 99,000 Total liabilities No data. 121,730 "Net Assets: Unrestricted" 104,000 No data. Temporarily restricted 33,040 No data. Permanently restricted 196,900 No data. Total net assets No data. 333,940 Total liabilities and net assets No data. $455,670 "The following transaction information (amounts in thousands) pertains to the year ended June 30, 2017." "1. During the year charges for tuition and fees were $244,500; scholarships were $16,300; and tuition waivers for scholastic achievement were $5,100. After payment was received, tuition refunds of $11,200 were given. Tuition waivers of $17,300 for students serving as teaching assistants for instruction were accrued." "2. The college received unrestricted cash contributions of $2,080, pledges to be collected in 2018 of $550, and cash contributions to the endowments of $335. It also collected $820 of Pledges Receivable that were unrestricted." 3. Collections on Tuition and Fees Receivable totaled $222,600 4. Net deposits returned to students totaled $10. "5. Expenses were incurred for: Instruction $86,100 Academic support 23,300 Student services 37,700 Institutional support 28,500" " Related to the expenses incurred: prepaid assets of $534 were used, $4,776 of the expenses were accrued, and the remaining expenses were paid. Expenses incurred resulted in the release of $7,320 in temporarily restricted net assets." 6. The ending balance in Accounts Payable and Accrued Liabilities was $1,935. "7. Investment earnings received for the period were $3,960, of which $2,070 was temporarily restricted." "8. Adjusting entries for the period were made to increase Allowance for Doubtful Accounts by $20, to record depreciation expense of $26,400 (charged 70 percent to instruction and 30 percent to academic support), to adjust tuition revenue for an increase in unearned revenue of $10, and to recognize an increase in fair value of investments of $4,700 ($790 was related to temporarily restricted net assets, $1,610 was related to permanently restricted net assets, the remainder was related to unrestricted net assets)." 9. Nominal accounts were closed. "Complete parts a, b, and c below. a. Prepare journal entries in good form to record the foregoing transactions for the year ended June 30, 2017. Use worksheet 15-17a to prepare your statement." "Unit 5 Assignment 2 Accounting for the Federal Government" 15-17a: Private College Transactions "Steiner College General Journal" This cell intentionally left blank. Account Debits Credits This cell intentionally left blank. 1. Tuition and fees receivable 223,100 Correct! Tuition & fees discount and allowances 21,400 Correct! Tuition and feesunrestricted 244,500 Correct! Tuition and feesunrestricted 11,200 Correct! Cash 11,200 Correct! Instruction expense 17,300 Correct! Accounts payable and accrued liabilities 17,300 Correct! 2. Cash 3,235 Correct! Pledges receivable 550 Correct! Contributionsunrestricted 2,080 Correct! Contributionstemporarily restricted 550 Correct! Contributionspermanently restricted 335 Correct! Pledges receivable 820 Correct! 3. Cash 222,600 Correct! Tuition and fees receivable 222,600 Correct! 4. Deposits held in custody for others 10 Correct! Cash 10 Correct! 5. Instruction expense 86,100 Correct! Academic support expense 23,300 Correct! Student services expense 37,700 Correct! Institutional support expense 28,500 Correct! Cash 170,290 Correct! Prepaid assets 534 Correct! Accounts payable and accrued liabilities 4,776 Correct! Net assets released from restrictionstemporarily restricted 7,320 Correct! Net assets released from restrictionsunrestricted 7,320 Correct! 6. Accounts payable and accrued liabilities 41,271 Correct! Cash 41,271 Correct! 7. Cash 3,960 Correct! Investment incomeunrestricted 1,890 Correct! Investment incometemporarily restricted 2,070 Correct! 8. Tuition and feesunrestricted 20 Correct! Allowance for doubtful accounts 20 Correct! Instruction expense 18,480 Correct! Academic support expense 7,920 Correct! Accumulated depreciation 26,400 Correct! Tuition and feesunrestricted 10 Correct! Unearned revenue 10 Correct! Investments 4,700 Correct! Unrealized gain on investmentsunrestricted 2,300 Correct! Unrealized gain on investmentstemporarily restricted 790 Correct! Unrealized gain on investmentspermanently restricted 1,610 Correct! "9. To close nominal accounts: Tuition and feesunrestricted" Contributionsunrestricted 2,080 Correct! Investment incomeunrestricted 1,890 Correct! Unrealized gain on investmentsunrestricted 2,300 Correct! Net assetsunrestricted Tuition & fees discount and allowances 21,400 Correct! Instruction expense 121,880 Correct! Academic support expense 31,220 Correct! Student services expense 37,700 Correct! Institutional support expense 28,500 Correct! Contributionstemporarily restricted 550 Correct! Investment incometemporarily restricted 2,070 Correct! Unrealized gain on investmentstemporarily restricted 790 Correct! Net assetstemporarily restricted 3,410 Correct! Contributionspermanently restricted 335 Correct! Unrealized gain on investmentspermanently restricted 1,610 Correct! Net assetspermanently restricted 1,945 Correct! "10. To reclassify Net Assets: Net assetstemporarily restricted" 7,320 Correct! Net assets released from restrictionsunrestricted 7,320 Correct! Net assetsunrestricted 7,320 Correct! Net assets released from restrictionstemporarily restricted 7,320 Correct! "b. Prepare a statement of activities for the year ended June 30, 2017. Use worksheet 15-17b to prepare your statement." "Steiner College Statement of Activities Year Ended June 30, 2017" Feedback Account Unrestricted "Temporarily Restricted" "Permanently Restricted" Total Unrestricted "Temporarily Restricted" "Permanently Restricted" " Revenues and gains: Student tuition and fees (net)" $0 Contributions 2,080 $550 $335 2,965 Correct! Correct! Correct! Investment income 1,890 2,070 3,960 Correct! Correct! Correct! Unrealized gain on investments 2,300 790 1,610 4,700 Correct! Correct! Correct! Net assets released from restrictions 7,320 (7,320) 0 Correct! Correct! Correct! Total revenues and gains 13,590 -3,910 1,945 11,625 Try again Correct! Correct! "Expenses and losses: Educational and general expenses: Instruction" 121,880 121,880 Correct! Correct! Correct! Academic support 31,220 31,220 Correct! Correct! Correct! Student services 37,700 37,700 Correct! Correct! Correct! Institutional support 28,500 28,500 Correct! Correct! Correct! Total expenses and losses 219,300 219,300 Correct! Correct! Correct! Total change in net assets -205,710 -3,910 1,945 (207,675) Try again Correct! Correct! Net assets, beginning of the year 104,000 33,040 196,900 333,940 Correct! Correct! Correct! Net assets, end of the year $0 "c. Prepare a statement of financial position for the year ended June 30, 2017. Use worksheet 15-17c to prepare your statement." "Steiner College Statement of Financial Position June 30, 2017" Account Amount This cell was intentionally left blank "Assets Cash and cash equivalents" Short-term investments 7,666 Correct! Tuition and fees receivable (net of doubtful accounts of $32) Pledges receivable (net of doubtful pledges of $280) Prepaid assets Property, plant and equipment (net of accumulated depreciation of $130,640) Investments (at fair value, cost of $162,000) Total assets $7,666 This cell intentionally left blank. "Liabilities and Net Assets Liabilities: Accounts payable and accrued liabilities" Deposits held in custody for others Unearned revenue Bonds payable Total liabilities $0 This cell intentionally left blank. "Net Assets: Unrestricted" Temporarily restricted Permanently restricted Total net assets Total liabilities and net assets $0 This cell intentionally left blank