2. Steiner College’s statement of financial position for the year ended June 30,

Question

2. Steiner College’s statement of financial position for the year ended June 30, 2016, is presented here. Steiner is a private college. STEINER COLLEGE Statement of Financial Position June 30, 2016 (amounts in thousands) Assets Cash and cash equivalents $ 750 Short-term investments 7,679 Tuition and fees receivable (net of doubtful accounts of $15) 245 Pledges receivable (net of doubtful accounts of $295) 5,890 Prepaid assets 1,378 Property, plant and equipment (net of accumulated depreciation of $104,440) 281,419 Investments (at fair value, cost of $165,700) 160,000 ________________________________________ ________________________________________ Total assets $ 457,361 ________________________________________________________________________________ ________________________________________________________________________________ Liabilities and Net Assets Liabilities: Accounts payable and accrued liabilities $ 21,320 Deposits held in custody for others 718 Unearned revenue 914 Bonds payable 96,000 ________________________________________ ________________________________________ Total liabilities 118,952 Net Assets: Unrestricted $ 104,200 Temporarily restricted 33,200 Permanently restricted 201,009 ________________________________________ ________________________________________ Total net assets 338,409 ________________________________________ ________________________________________ Total liabilities and net assets $ 457,361 ________________________________________________________________________________ ________________________________________________________________________________ ________________________________________ The following transaction information (amounts in thousands) pertains to the year ended June 30, 2017. 1. During the year charges for tuition and fees were $244,710; scholarships were $16,460; And tuition waivers for scholastic achievement were $5,310. After payment was received tuition refunds of $11,390 were given. Tuition waiver of $17,500 for students serving as teaching assistants for instruction were accrued. 2. The college received unrestricted cash contributions of $2,290, pledges to be collected in 2018 of $551, and cash contributions to the endowments of $350. It also collected $836 of Pledges Receivable that were unrestricted. 3. Collections on Tuition and Fees Receivable totaled $222,740. 4. Net deposits returned to students totaled $10. 5. Expenses were incurred for: Instruction $ 86,360. Academic support 23,520. Student services 37,890. Institutional support 28,710. ________________________________________ Related to the expenses incurred: prepaid assets of $546 were used, $4,791 of the expenses were accrued, and the remaining expenses were paid. Expenses incurred resulted in the release of $7,530 in temporarily restricted net assets. 6. The ending balance in Accounts Payable and Accrued Liabilities was 2,185. 7. Investment earnings received for the period were $4,170, of which $2,270 was temporarily restricted. 8. Adjusting entries for the period were made to increase Allowance for Doubtful Accounts by $13, to record depreciation expense of $26,560 (charged 70 percent to instruction and 30 percent to academic support), to adjust tuition revenue for an increase in unearned revenue of $10, and to recognize an increase in fair value of investments of $4,910 ($1,040 was related to temporarily restricted net assets, $1,800 was related to permanently restricted net assets, the remainder was related to unrestricted net assets). 9. Nominal accounts were closed. a-1 Prepare journal entries to record the foregoing transactions for the year ended June 30, 2017. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in thousands.)

Explanation / Answer

Solution:

(A). Total Assets:

   Cash and Cash Eqivalents 750

   Short-term Investment 7,679

Tuetion Fee Receivables 245   

Pledge Receivables 5,890

Prepaid Assets 1,378

   Plan and Equipment 2,81,419

   Investments 1,60,000

   Total Assets = 4,57,361

(B). Caluculation of Liabilites:

Accouns Payable 21,320

   Deposits Custody 718

   Unearned revenue 914

   Bonds Payable 96,000

   Restrickted Assets 3,38,409

   Total Liabilities = 4,57,361

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