Chapar 19 ACCOUNTING FOR NOT-FOR-PROFIT COLLEGES AND UNIVERSITIES AND HEALTH CARE ORGANIZATIONS Problem 19-6 10 1. 2. 3. 4. 5) Private university, various transactions, state ment of activities. The statement of financial position of Washbud Private University as of the end of its fiscal year, June 30, 2018, is as follows: Cash Assets (in 000's) Accounts receivable student tuition and fees less allowance for doubtful accounts of $9,000. Washbud Private University Statement of Financial Position For Year Ended June 30, 2018 Liabilities and Fund Balances (in 000's) $257,000 Accounts payable 311,000 Deferred revenues. Long-term debt. Total liabilities Net assets: Unrestricted. Temporarily restricted Permanently restricted 75,000 50,000 90,000 Total net assets. $783,000 Total net assets and liabilities. 101 $ 40,000 66,000 100,000 $206,000 $487,000 State appropriations receivable Endowment investments. Property, plant, and equipment (net). Total assets.. The following transactions occurred during the fiscal year ended June 30, 2019 (all numbers are in 000's): a. On July 7, 2018, a gift of $90,000 was received from an alumnus. The alumnus requested that one-half of the gift be used for the purchase of equipment for the university athletic depart- ment and the remainder be used for the establishment of a permanently restricted endowment. The alumnus further requested that the income generated by the endowment be used annually to award a scholarship to a qualified disadvantaged student. On July 20, 2018, the board of trustees resolved that the funds of the newly established endowment would be invested in sav- ings certificates. On July 21, 2018, the savings certificates were purchased. b. Revenues from student tuition and fees applicable to the year ended June 30, 2019, amounted to $1,900,000. Of this amount, $66,000 was collected in the prior year, and $1,686,000 was collected during the year ended June 30, 2019. In addition, at June 30, 2019, the university had received cash of $158,000 representing fees for the session beginning July 1, 2019. c. During the year ended June 30, 2019, the university had collected $308,000 of the out- standing accounts receivable at the beginning of the year. The remainder was determined to be uncollectible and was written off against the allowance account. At June 30, 2019, the allowance account was adjusted to $6,000. d. During the year, interest charges of $6,000 were earned and collected on late student fee payments. e. During the year, the state appropriation was received. An additional unrestricted appropriation of $40,000 was made by the state, but it had not been paid to the university as of June 30, 2019. f. A gift of $30,000 cash restricted was received from alumni of the university for economic research expenses. g. During the year, endowment investments that cost $21,000 were sold for $24,000. This includes accrued investment income amounting to $1,900. All income was restricted for programs to enhance teaching effectiveness. h. During the year, unrestricted operating expenses of $1,800,000 were recorded. They include the following: Instruction Research Institutional support $ 500,000 400,000 100,000 100,000 200,000 Operation and maintenance of plant 500,000 $1,800,000 Total. Student aid Student services. 40,000 50,000 $577,000 $783,000 1020 Required Part 4 GOVERNMENTAL AND NOT-FOR-PROFIT ACCOUNT At June 30, 2019, $60,000 of these expenses remained unpaid. i. Temporarily restricted funds of $13,000 were spent for specified economic resea described in item (f). j. The accounts payable at June 30, 2018, were paid during the year. k. During the year, $7,000 interest was earned and received on the savings certificates pur- chased in item (a). 1. In honor of its 25th anniversary, Washbud Private University conducted a fund drive. Con- tributions of $16,000 were received. Additional unconditional pledges of $14,000 were pro- mised for payment in December 2019. It is anticipated that $2,000 of the pledges will be uncollectible. s not used. 1. Prepare journal entries to record the transactions. Assume fund accounting 2. Prepare a statement of activities for the year ended June 30, 2019, using a column for each of the three net asset classifications and a total column. Problem 19-7 (LO 1, 2, 3, 4, 5) Private university, various transactions, state- ment of activities. The following events occurred as part of the operations of Kronke Private University for the year 2018 (all amounts are in 000's):