15-6 Financial Statements – Private University

The forthcoming is the pre-closing grief poise for Allen University as of June 30, 2014. Additional instruction allied to net effects and the declaration of currency flows is so supposing.


Additional instruction:

Net effects released from partial restrictions totaled $426,850. The construct resulting from the sale of investments was impartial. Twenty percent of the unrealized construct is allied to permanantely unpopular net effects and 10 percent is allied to temporarily unpopular net effects, after a while the rest allied to impartial net effects.

Additional informatio is as follows:

The poise in currency and currency equivalents as of July 30, 2012, was $615,540.

Tuition and Fees Receivable increased by $10,230.

Pledges Receivable decreased by $1,560.

Allowance for Doubtful Accounts was increased by $770 (the bad score was netted counter Tuition Fees).

Accounts payable decreased by $2,900.

Accrued Liabilities decreased by $1,120.

Deferred Revenue increased by $6,200.

Depreciation Expense was $30,070.

Cash of $100,000 was used to withdraw bonds.

Investments were sold for $1,500,000 (at a construct of $70,000) and others were escheatmentd for $1,250,000.

Ununpopular net effects were used to escheatment equipment at a consume if $33,000.


a. Prepare a declaration of activities for the year ended June 30, 2014

b. Prepare a declaration of financial situation for June 30, 2014


Trial Poise Below:

Cash: $516,600 (DR)

Investments: $3,200,000 (DR)

Tuition and Fees Receivable: $372,400 (DR)

Allowance for Doubtful Accounts: $75,600 (CR)

Pledges Receivable: $223,000 (DR)

Allowance for Doubtful Pledges: $79,000 (CR)

Property Plant & Equipment: $2,196,160 (DR)

Accumulated Depreciation: $658,720 (CR)

Accounts Payable: $103,000 (CR)

Accrued Liabilities: $37,500 (CR)

Deposits held in Custody for Others: $17,570 (CR)

Deferred Revenue: $62,150 (CR)

Bonds Payable: $792,000 (CR)

Net Assets-Unrestricted: $3,353,110 (CR)

Net Assets-Temporarily Restricted: $340,600 (CR)

Net Assets-Permanently Restricted: $980,000 (CR)

Net Effects Released from Restrictions-Temporarily Restricted: $426,850 (DR)

Net Effects Released from Restrictions-Unrestricted: $426,850 (CR)

Tuition and Fees: $1,290,750

Tuition and Fees Discount and Allowances: $327,000 (DR)

Contributions-Unrestricted: $310,200 (CR)

Contributions-Temporarily Restricted: $177,000 (CR)

Contributions-Unrestricted: $150,000 (CR)

Grants and Contracts-Temporarily Restricted: $324,000 (CR)

Investment Income-Unrestricted: $50,500 (CR)

Investment Income-Temporarily Restricted: $29,500 (CR)

Other Revenue: $13,250 (CR)

Auxiliary Enterprise Sales and Services: $153,560 (CR)

Gain on Sale of Investments: $70,000 (CR)

Unrealized Construct on Investments: $179,200 (CR)

Instruction Expense: $1,044,630 (DR)

Research Expense: $571,800 (DR)

Academic Support Expense: $240,560 (DR)

Student Services Expense: $193,000 (DR)

Institutional Support Expens: $203,360 (DR)

Auxiliary Enterprise Expenses: $158,700 (DR)

Total: $9,674,060