Assets Cash and cash equivalents 750 Short-term investments 7,679 Tuition and fe
ID: 2499182 • Letter: A
Question
Assets
Cash and cash equivalents
750
Short-term investments
7,679
Tuition and fees receivable (net of doubtful accounts of $15)
245
Pledges receivable (net of doubtful accounts of $295)
5,890
Prepaid assets
1,378
Property, plant and equipment (net of accumulated depreciation of $104,440)
281,419
Investments (at fair value, cost of $165,700)
160,000
Total assets
$
457,361
Liabilities and Net Assets
Liabilities:
Accounts payable and accrued liabilities
$
21,320
Deposits held in custody for others
718
Unearned revenue
914
Bonds payable
96,000
118,952
Total liabilities
Net Assets:
Unrestricted
$
104,200
Temporarily restricted
33,200
Permanently restricted
201,009
Total net assets
338,409
Total liabilities and net assets
$
457,361
The following transaction information (amounts in thousands) pertains to the year ended June 30, 2017.
During the year charges for tuition and fees were $244,710; scholarships were $16,460; And tuition waivers for scholastic achievement were $5,310. After payment was received tuition refunds of $11,390 were given. Tuition waiver of $17,500 for students serving as teaching assistants for instruction were accrued.
The college received unrestricted cash contributions of $2,290, pledges to be collected in 2018 of $551, and cash contributions to the endowments of $350. It also collected $836 of Pledges Receivable that were unrestricted.
Collections on Tuition and Fees Receivable totaled $222,740.
Net deposits returned to students totaled $10.
Expenses were incurred for:
Instruction
$
86,360.
Academic support
23,520.
Student services
37,890.
Institutional support
28,710.
Related to the expenses incurred: prepaid assets of $546 were used, $4,791 of the expenses were accrued, and the remaining expenses were paid. Expenses incurred resulted in the release of $7,530 in temporarily restricted net assets.
The ending balance in Accounts Payable and Accrued Liabilities was 2,185.
Investment earnings received for the period were $4,170, of which $2,270 was temporarily restricted.
Adjusting entries for the period were made to increase Allowance for Doubtful Accounts by $13, to record depreciation expense of $26,560 (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 $4,910 ($1,040 was related to temporarily restricted net assets, $1,800 was related to permanently restricted net assets, the remainder was related to unrestricted net assets).
Nominal accounts were closed.
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. Enter your answers in thousands.)
Assets
Cash and cash equivalents
750
Short-term investments
7,679
Tuition and fees receivable (net of doubtful accounts of $15)
245
Pledges receivable (net of doubtful accounts of $295)
5,890
Prepaid assets
1,378
Property, plant and equipment (net of accumulated depreciation of $104,440)
281,419
Investments (at fair value, cost of $165,700)
160,000
Total assets
$
457,361
Liabilities and Net Assets
Liabilities:
Accounts payable and accrued liabilities
$
21,320
Deposits held in custody for others
718
Unearned revenue
914
Bonds payable
96,000
118,952
Total liabilities
Net Assets:
Unrestricted
$
104,200
Temporarily restricted
33,200
Permanently restricted
201,009
Total net assets
338,409
Total liabilities and net assets
$
457,361
The following transaction information (amounts in thousands) pertains to the year ended June 30, 2017.
Explanation / Answer
Account Title and explanations Debit Credit Tution And Fee Receivable 244710 To Tution And Fee 244710 (being tution and fee received) Scholarship 16460 To Cash 16460 (Being scholarship paid) Scholarship 5310 To Tution and Fees Receivable 5310 (Being waiver of tution fee for scholarship) Teaching Expense 17500 To Tution and fee Receivable 17500 (Being waiver of tution fee because of receiving teaching assistants) Cash 222740 To Tution and Fee Receiavbel 222740 (Being tution fee received) Tution Refund 11390 To CASH 11390 Being tution fee refunded) Cash 3126 To Unrestricted Contribution 2290 To Pledge Receivable 836 (Being amount received) Pledge Receivable 551 To Pledge 551 (being amount receivable in 2018) Endowment Fund 350 To Cash 350 (Being Cash Contribution to endowment) Deposit 10 To Cash 10 (Being deposit returned to customer) Instruction 86360 Academic Support 23520 Student Services 37890 Institutional Support 28710 To Prepaid Expense 546 To Accrued Expense 4791 To Cash 171143 (Being expenses paid and recognised) Cash 4170 Restricted Earnings 2270 To Earning on Investment 1900 (Earning on Investment recognised)
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