This exercise uses the same fact setting as Exercise 11-9 except that items 1 and 2 are changed to be consistent with a private institution. The Great Lakes Maritime Institute is a private not-for-profit institution preparing cadets for careers in commercial shipping and includes instruction in piloting, navigation, maritime law, and other fields. 

1. The Institute began the year with the following account balances:

2. The Institute received an unrestricted operating grant of $75,000 from the Maritime Shipping Association, a trade association for commercial shipping firms. Additionally, the Institute received unrestricted gifts of $10,000. Items 3–15 are the same as in Exercise 11-9.

Required:

a. Prepare journal entries recording the events above for the year ending December 31, 2020.

b. Post the journal entries to T-accounts.

c. Prepare closing entries.

d. Prepare a Statement of Activity.

e. Prepare a Statement of Financial Position.

f. Prepare a Statement of Cash Flows.

Transcribed Image Text:

Beginning Balances July 1, 2019 Debits Credits 125.000 40,000 500.000 250,000 1,100,000 Cash Student accounts receivable Investments-endowment Restricted cash Capital assets Accumulated depreciation Accounts payable and accrued liabilities Deferred revenues 350,000 4,000 7,000 Net assets with donor restrictions-permanent endowment Net assets with donor restrictions-capital acquisitions Net assets without donor restrictions 500,000 250,000 904,000