A university maintains several plant funds as shown in the condensed balance sheets presented below. The fund structure and presentation are consistent with the AICPA college and university reporting model. Although this model has been superseded by FASB Statement No. 117, Financial Statements of Not-for-Profit Organizations, it is still used by many colleges and universities for internal purposes.

1. Recast the plant funds as they would appear in external reports in accord with Statement No. 117. That is, show how each of the reported amounts would be shown in a balance sheet with one column each for unrestricted and temporarily restricted amounts (there are no permanently restricted amounts). Allocate the cash ($9,000) and investments ($27,000) of the unexpended plant funds to the donor restricted category based on donor restricted fund balance as a proportion of total liabilities and fund balances (e.g., $4,000/$36,000 to temporarily restricted net assets).
2. Comment briefly on the advantages and disadvantages of eachpresentation.

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Plant Funds (in thousands) Unexpended plant funds Assets Cash Investments s 9,000 27,000 S 36,000 Total assets Liabilities and fund balances s 24,000 Bonds payable Fund balance Restricted by donors for specified projects $ 4,000 8,000 Total liabilities and fund Funds for renewals and Assets Unrestricted balances replacements Cash S 4,500 Investments Total assets Liabilities and fiumd balances Funds for retirement of Assets Fund balance S 89,600 indebtedness Cash Investments S 21,600 25,600 S 47,200 Total assets Liabilities and fund balances Fund balance S 47,200 Plant Funds (in thousands) Investment in plant Assets Construction in process Equipment Land Buildings S 3,500 39,300 12,000 127,800 182,600 78,200) 5104,400 Total plant Less accumulated depreciation Total investment in plant Liabilities and find balances S 20,000 Notes payable Bonds payahle Capital lease obligations Net investment in plant 8,500 36,900 S104,400 Total investment in plant