Financial Statements—Private University. The following is the pre closing trial balance for Horton University as of June 30, 2011. Additional information related to net assets and the statement of cash flows is also provided.
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HORTON UNIVERSITY Pre Closing Trial Balance June 30, 2011 |
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Debits |
Credits |
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Cash and Cash Equivalents |
$1,516,600 |
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Investments |
3,200,000 |
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Tuition and Fees Receivable |
372,400 |
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Allowance for Doubtful Accounts |
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$ 75,600 |
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Pledges Receivable |
223,000 |
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Allowance for Doubtful Pledges |
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79,000 |
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Property, Plant, and Equipment |
1,996,160 |
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Accumulated Depreciation |
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658,720 |
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Accounts Payable |
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103,000 |
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Accrued Liabilities |
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37,500 |
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Deposits Held in Custody for Others |
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17,570 |
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Bonds Payable |
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792,000 |
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Deferred Revenue |
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62,150 |
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Liabilities Under Split Interest Agreements |
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40,510 |
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Net Assets—Unrestricted |
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4,051,410 |
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Net Assets—Temporarily Restricted |
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200,600 |
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Net Assets—Permanently Restricted |
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980,000 |
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Net Assets Released from Restrictions—Temporarily Restricted |
26,850 |
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Net Assets Released from Restrictions—Unrestricted |
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26,850 |
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Tuition and Fees |
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290,750 |
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Tuition and Fees Discounts and Allowances |
98,000 |
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Contributions—Unrestricted |
310,200 |
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Contributions—Temporarily Restricted |
77,000 |
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Grants and Contracts—Unrestricted |
324,000 |
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Grants and Contracts—Temporarily Restricted |
121,800 |
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Investment Income—Unrestricted |
11,500 |
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Other Revenue |
13,250 |
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Auxiliary Enterprise Sales and Services |
53,560 |
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Unrealized Gain on Investments |
280,400 |
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Instruction Expense |
629,750 |
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Research Expense |
269,600 |
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Academic Support Expense |
100,400 |
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Student Services Expense |
46,500 |
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Institutional Support Expense |
68,910 |
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Auxiliary Enterprise Expenses |
58,700 |
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Loss on Sale of Equipment |
500 |
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Total |
$8,580,520 |
$8,580,520 |
Additional information
Net assets released from temporary restrictions totaled $26,850. There were no restrictions on the investment income earned. Twenty percent of the unrealized gain is related to permanently restricted net assets and 10 percent is related to temporarily restricted net assets, with the remainder related to unrestricted net assets.
The differences between the beginning and ending balances were as follows:
Tuition and Fees Receivable increased by $10,230.
Pledges Receivable decreased by $1,560.
Allowance for Doubtful Accounts was increased by $770 (the bad debt was netted against Tuition and Fees).
Accounts Payable decreased by $2,900.
Accrued Liabilities decreased by $1,120.
Deferred Revenue increased by $6,200.
Depreciation Expense was $30,070.
Cash of $100,000 was used to retire bonds.
Investments were sold for $1,500,000 and others were purchased for $1,250,000.
Required
a. Prepare a statement of activities for the year ended June 30, 2011.
b. Prepare a statement of financial position for June 30, 2011.
c. Prepare a statement of cash flows for the year ended June 30, 2011.