• This exercise uses the same fact setting as 11-9 except 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:

   Beginning Balances July 1, 2019
   		Debits		Credits
   	Cash	125,000
   	Student accounts receivable	40,000
   	Investmentsendowment	500,000
   	Restricted cash	250,000
   	Capital assets	1,100,000
   	Accumulated depreciation			350,000
   	Accounts payable and accrued liabilities			4,000
   	Deferred revenues			7,000
   	Net assets with donor restrictionspermanent endowment			500,000
   	Net assets with donor restrictionscapital acquisitions			250,000
   	Net assets without donor restrictions			904,000

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 315, same as Exercise 11-9.

Required:

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

2. Post the journal entries to T-accounts.

3. Prepare closing entries.

4. Prepare a Statement of Activitypresent net assets without donor restrictions in a single column.

5. Prepare a Statement of Financial Position.

6. Prepare a Statement of Cash Flows