Question

Problem 2 (30 points) The statement of net assets for Jackson Hole College, a nongovernmental and nonprofit institution, as of June 30, 20X5, is attached. Transactions for the fiscal year 20X5-20X6 are also provided. transactions. Be sure to indicate in which net asset classification the entries should be made. (2 Prepare a statement of activities, in proper form, for the college for the fiscal year ending June 30, 20x6. Prepare a statement of net assets, in proper form, for the college at June 30, 20X6 (3) JACKSON HOLE COLLEGE TRANSACTIONS FOR FISCAL YEAR ENDING JUNE 30, 20X6 (a) Fees charged to students for the fall and spring semesters of fiscal year 20X5-20X6 totaled $2,200,000, of which $2,100,000 was collected in cash. The Allowance For Doubtful (b) Collections of accounts receivable totaled $20,000. Accounts amounting to $1,000 were (c) The deferred revenue of $148,000 shown in the balance sheet resulted from student fees Accounts was increased by $4,000 written off charged for the summer term which began with one month remaining in fiscal year 20X4 20X5, with the remainder conducted in 20X5-20X6 (d) Fees charged to students for summer school totaled $144,000, all of which were collected in cash. The summer term will have one month conducted in fiscal year 20X5-20X6, with the remainder being conducted in 20X6-20X7 (e Temporary investments in the amount of $10,000 held at the beginning of the year were sold for S10,500. Restricted funds cash spent for authorized purposes amounted to S2,500. An additional $8,000 was trans ferred to unrestricted funds in payment of the liability existing on June 30, 20X5 () During the year, accounts payable for purchases, salaries and wages, utility bills, and other expenditures totaling $1,750,000 were recorded. Accounts payable at the end of the year amounted to $70,000 (g) Supplies inventory at the end of the year amounted to S25,000, according to the physical count. (h) During the year, the federal grant of $182,000 was received which was restricted for research. Research expenses in that amount were expended during the current year for which these funds had been provided. A further grant restricted for research of $192,000 was made by the state but had not been paid to the college by year end (i) The pledges receivable at the beginning of the year were collected in full in the current fiscal year. They had been pledged in the previous fiscal year but were not available unrestricted use until the current fiscal year. For the current fiscal year, the college received pledges in the amount of $15,000, of which 190 are expected to be uncollectible, and are restricted for use in next fiscal year. In addition, the college received unrestricted gifts in the amount of S65,000 G) Income was received in cash from the following investments: unrestricted investments $35,000; permanently restricted investments of $58,000. The income from permanently restricted investments must be used 50% for the acquisition of plant assets and 50% for scholarship funds (k) All nominal accounts were closed JACKSON HOLE COLLEGE STATEMENT OF NET ASSETS AT JUNE 30, 20X5 ASSETS Cash Accounts Receivable--Student Fees Less: Allowance For Doubtful Accounts Pledges Receivable Federal Grants Receivable Inventory (at cost) Investments (at cost) Property, Plant, and Equipment Less: Accumulated Depreciation 73,000 25,000 1,000) 24,000 8,000 182,000 14,000 524,000 2,500,00 650,000) 1,850,000 $ 2,675,000 TOTAL ASSETS LIABILITIES 150,000 148,000 298,000 Accounts Payable Deferred Revenue TOTAL LIABILITIES NET ASSETS S 1,867,000 190,000 320,000 Unrestricted Temporarily Restricted Permanently Restricted 2,377,000 S 2,675,000 TOTAL NET ASSETS TOTAL LIABILITIES AND NET ASSETS

Answer 1

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Rel i( $)|Credit Journal enthies 112 000 12000 Tb in ceme Statement be。 8000 8a) Cask 8oo o ro pledge. neceivaue being pleage receved ) pledgemeccNable I50o0 being pledye eceivable vecor ded 15 0 n Provisfon made) g) Cash 65000 C Sooo ing gift necetves) ) Cash 74) 13000 4300 0 Income Setermeidt ein incme on invest ment Cs Scanned with CamScanner

plant, aset . scho layship fund TD Cash beinn asef puchased 1000 9900 C 5800 6 out of n Come to) nvero 11000 too O crening balance 10000 2500) Ald aaldition duing the year500 closing balante 192500 NOTE 2: 32 Accout payable opening halance CCouv 1S000O 50000 133000 0 ADOOD cid closing loalante CS Scanned with Camscanner

emeste 22 0000 0 22 000 o O Fee charges fp i ne 9BO00 Deferred Income p:s&七on Se le 04 investment SO0 244415 co Ttal Prn come penses Allosance dolfl cots 4c0 0 inventory panchased Schelarship tund expense om salary etc. estricted arant expense Allowance半のぐpledge 巾tal expense yoo O 21000 183000 o 18200O IS O 20561 SO cs seannhe 3 8 535O CamScanner

stetonent of net asse Assets 9 8100 0 Cash 12 44 000 tesss Allouwance for doudt ful accoti00012.0000 pledges seceival less allowance fr Federal arauts recelvable llouoance for 15000 (150) 4&so pledge t 192000 25000 524000 Envestment opert,Pl pmeut less: accum ulated de prCfatian 252160 O at aud equ e 50000)丨18741000 3043850 Ptal assets 구 0000 Accoust Payable De fersed vevenue totel Iiabitfes ltt o0D 21400口 Net ass et 285350 t432 000 112500 32000D Net psoft temporary Pnestiicted Permanet aestacted 巾tal het asser 2821850 9043850