Private College Transactions. Steiner College's statement of financial position for the year ended June 30, 2016, is presented here. Steiner is a private college.
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:
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Instruction
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$86,100
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Academic support
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23,300
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Student services
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37,700
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Institutional support
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28,500
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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.
The ending balance in Accounts Payable and Accrued Liabilities was $1,935.
Investment earnings received for the period were $3,960, of which $2,070 was temporarily restricted.
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).
Nominal accounts were closed.
Required
- Prepare journal entries in good form to record the foregoing transactions for the year ended June 30, 2017.
- Prepare a statement of activities for the year ended June 30, 2017.
- Prepare a statement of financial position for the year ended June 30, 2017.