PROBLEM 19-3 Various Funds-University L02 L03 A partial statement of financial position of Century University is...

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PROBLEM 19-3 Various Funds-University L02 L03 A partial statement of financial position of Century University is shown below. Restricted Cash Current Funds Unrestricted Cash Accounts Receivable (less allowance for doubtful accounts, $9,000) State Appropriations Receivable Total Unrestricted Century University Partial Statement of Financial Position June 30, 2011 Investments Total Restricted Total Current Current Funds Unrestricted Accounts Payable Deferred Revenues Fund Balance Total Unrestricted Restricted Assets Fund Balance Total Restricted Total Current Liabilities and Fund Balances $210,000 341,000 75,000 626,000 7,000 60,000 67,000 $693,000 $ 45,000 66,000 515,000 626,000 67,000 67,000 $693,000 During the fiscal year ended June 30, 2008, the following transactions occurred: 1. A gift of $100,000 was received from an alumnus on July 7, 2011. One-half of the gift was to be used for the purchase of books for the university's library and the rest was to be used to establish a scholarship fund per the alumnus's request. It was also requested that the income generated by the scholarship fund be awarded annually as a scholarship for a qualified disadvantaged student. The board decided that the funds for the new scholar- ship should be invested in savings certificates on July 20, 2011. These savings certificates were purchased on July 21, 2011. 2. Revenue for the fiscal period from student tuition and fees amounted to $1,900,000. During the fiscal year, $1,686,000 of this amount was collected; $66,000 had been col- lected in the prior year. The university had also received $158,000 by June 30, 2012, for fees for the session beginning July 1, 2012. 3. During the year ended June 30, 2012, the university collected $349,000 of the outstand- ing accounts receivable at the beginning of the year. The balance was determined to be uncollectible and was written off against the allowance account. At June 30, 2012, the allowance account was increased by $3,000. 4. Because of late student fee payments, $6,000 in interest charges were earned and collected. 5. The state appropriation was received. Another unrestricted appropriation of $50,000 was made by the state. This had not been paid to the university by the fiscal year-end. 6. An unrestricted gift of $25,000 cash was received from alumni of the university. 7. During the year, investments of $21,000 were sold for $26,000. Investment income amounting to $1,900 was received. 8. Unrestricted operating expenses were recorded at $1,777,000, $59,000 of which remains unpaid. 9. Restricted current funds of $13,000 were spent for authorized purposes during the year. 10. The accounts payable at June 30, 2011, were paid during the year. 11. During the year, $7,000 interest was earned and received on the savings certificates pur- chased in accordance with the board's resolution [in item (1)]. B. Prepare a statement of activities for the year ended June 30, 2012. C. Prepare a statement of activities for the current funds for the year ended June 30, 2012. Include more details about the revenues and expenses. PROBLEM 19-3 Various Funds-University L02 L03 A partial statement of financial position of Century University is shown below. Restricted Cash Current Funds Unrestricted Cash Accounts Receivable (less allowance for doubtful accounts, $9,000) State Appropriations Receivable Total Unrestricted Century University Partial Statement of Financial Position June 30, 2011 Investments Total Restricted Total Current Current Funds Unrestricted Accounts Payable Deferred Revenues Fund Balance Total Unrestricted Restricted Assets Fund Balance Total Restricted Total Current Liabilities and Fund Balances $210,000 341,000 75,000 626,000 7,000 60,000 67,000 $693,000 $ 45,000 66,000 515,000 626,000 67,000 67,000 $693,000 During the fiscal year ended June 30, 2008, the following transactions occurred: 1. A gift of $100,000 was received from an alumnus on July 7, 2011. One-half of the gift was to be used for the purchase of books for the university's library and the rest was to be used to establish a scholarship fund per the alumnus's request. It was also requested that the income generated by the scholarship fund be awarded annually as a scholarship for a qualified disadvantaged student. The board decided that the funds for the new scholar- ship should be invested in savings certificates on July 20, 2011. These savings certificates were purchased on July 21, 2011. 2. Revenue for the fiscal period from student tuition and fees amounted to $1,900,000. During the fiscal year, $1,686,000 of this amount was collected; $66,000 had been col- lected in the prior year. The university had also received $158,000 by June 30, 2012, for fees for the session beginning July 1, 2012. 3. During the year ended June 30, 2012, the university collected $349,000 of the outstand- ing accounts receivable at the beginning of the year. The balance was determined to be uncollectible and was written off against the allowance account. At June 30, 2012, the allowance account was increased by $3,000. 4. Because of late student fee payments, $6,000 in interest charges were earned and collected. 5. The state appropriation was received. Another unrestricted appropriation of $50,000 was made by the state. This had not been paid to the university by the fiscal year-end. 6. An unrestricted gift of $25,000 cash was received from alumni of the university. 7. During the year, investments of $21,000 were sold for $26,000. Investment income amounting to $1,900 was received. 8. Unrestricted operating expenses were recorded at $1,777,000, $59,000 of which remains unpaid. 9. Restricted current funds of $13,000 were spent for authorized purposes during the year. 10. The accounts payable at June 30, 2011, were paid during the year. 11. During the year, $7,000 interest was earned and received on the savings certificates pur- chased in accordance with the board's resolution [in item (1)]. B. Prepare a statement of activities for the year ended June 30, 2012. C. Prepare a statement of activities for the current funds for the year ended June 30, 2012. Include more details about the revenues and expenses.

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Answer B Prepare a statement of activities for the year ended June 30 2012 CENTURY UNIVERSITY Statem... View the full answer