Problem 11-8

Presented below are the closing entries for Lee College, a private not-for-profit, for the year ended December 31, 2014.

		Debit	Credit
Revenues - Unrestricted - Tuition and Fees		11,000,000
Revenues - Unrestricted - Unrestricted Income on Endowment Investments		40,000
Revenues - Unrestricted - Sales and Services of Auxiliary Enterprises		5,500,000
Revenues - Unrestricted - Contributions		100,000
Reclassifications to Unrestricted Net Assets - Satisfaction of Program Restrictions		720,000
Reclassifications to Unrestricted Net Assets - Satisfaction of Plant Acquisition Restrictions		1,080,000
Net Assets - Unrestricted		110,000
	Tuition Discount - Unrestricted - Student Aid		375,000
	Instruction Expense		7,000,000
	Research Expense		4,500,000
	Public Service Expense		1,200,000
	Institutional Support Expense		1,600,000
	Student Services Expense		150,000
	Auxiliary Enterprise Expense		3,725,000
Revenues - Temporarily Restricted - Contributions		1,500,000
Revenues - Temporarily Restricted - Grants		970,000
	Reclassifications from Temporarily Restricted Net Assets - Satisfaction of Program Restrictions		720,000
	Reclassifications from Temporarily Restricted Net Assets - Satisfaction of Plant Acquisition Restrictions		1,080,000
	Net Assets - Temporarily Restricted		750,000
Revenues - Permanently Restricted - Contributions		2,540,000
Gains on Long-Term Investments		750,000
Net Assets - Permanently Restricted			3,290,000

Assume the January 1, 2015, net asset balances are as follows: $1,000,000 unrestricted net assets; $300,000 temporarily restricted net assets; and $1,760,000 permanently restricted net assets.

Prepare a statement of Activities using the format presented in Illustration 10-2.

Prepare a Statement of Unrestricted Revenues, Expenses, and Other Changes in Unrestricted Net Assets together with a Statement of Changes in Net Assets.