Exercise $15-18($Static$)$ Private College Transactions $[$LO $15-4]$

Steiner College$$s statement of financial position for the year ended June $30,2022,$ is presented here. Steiner is a private college.

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STEINER COLLEGEStatement of Financial PositionJune $30,2022($amounts in thousands$)$Assets$$Cash and cash equivalents$$$$734$Short$-$term investments$7,666$Tuition and fees receivable $($net of doubtful accounts of $$12)230$Pledges receivable $($net of doubtful accounts of $$280)5,872$Prepaid assets$1,364$Property$,$ plant, and equipment $($net of accumulated depreciation of $$104,240)281,404$Investments $($at fair value, cost of $$162,000)158,400$Total assets$$$$455,670$Liabilities and Net Assets$$Liabilities:$$Accounts payable and accrued liabilities$$$$21,130$Deposits held in custody for others$700$Deferred revenue$900$Bonds payable$99,000$Total liabilities$121,730$Net Assets:$$Without donor restrictions$$104,000$With donor restrictions$229,940$Total net assets$333,940$Total liabilities and net assets$$$$455,670$

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The following transaction information $($amounts in thousands$)$ pertains to the year ended June $30,2023.$

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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.

The college received cash contributions without donor restrictions of $$2,080,$ pledges to be collected in $2024$ of $$550,$ and cash contributions to the endowments of $$335.$ It also collected $$820$ of Pledges Receivable that were unrestricted.

Collections on Tuition and Fees Receivable totaled $$222,600.$

Net deposits returned to students totaled $$10.$

Expenses were incurred for:

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$$Instruction$$86,100$Academic support$23,300$Student services$37,700$Institutional support$28,500$

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 net assets with donor restrictions.

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 donor restricted for scholarships.

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 deferred revenue of $$10,$ and to recognize an increase in fair value of investments of $$4,700($$$790$ was related to investments restricted for scholarships, $$1,610$ was related to the permanent endowment, and the remainder was related to net assets without donor restrictions$).$

Nominal accounts were closed.

Required

a$-1.$ Prepare journal entries to record the foregoing transactions for the year ended June $30,2023.$

a$-2.$ Prepare closing entry for the year ended June $30,2023.$

b$.$ Prepare a statement of activities for the year ended June $30,2023.$

c$.$ Prepare a statement of financial position for the year ended June $30,2023.$