Washbud Private University Statement of Financial Position For Year Ended June 30, 2018 Assets (in 000's) Liabilities and Fund Balances (in 000's) $ 40,000 66,000 $257,000 Accounts payable Deferred revenues Cash Accounts receivable student tuition and fees less allowance for doubtful 100,000 $206,000 Long-term debt. . accounts of $9,000.. 311,000 Total liabilities Net assets: $487,000 40,000 50,000 Unrestricted. State appropriations receivable Endowment investments. 75,000 50,000 Temporarily restricted Permanently restricted Total net assets.. $577,000 $783,000 Property, plant, and equipment (net) 90,000 Total assets. . $783,000 Total net assets and liabilities.
The
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 department 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 savings 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 outstanding
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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500,000
Research . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400,000
Institutional support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000
Student aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000
Student services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000
Operation and maintenance of plant . . . . . . . . . . . . . . . . . . 500,000
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,800,000
At June 30, 2019, $60,000 of these expenses remained unpaid.
i. Temporarily restricted funds of $13,000 were spent for specified economic research 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 purchased in item (a).
l. In honor of its 25th anniversary, Washbud Private University conducted a fund drive. Contributions of $16,000 were received. Additional unconditional pledges of $14,000 were promised for payment in December 2019. It is anticipated that $2,000 of the pledges will be uncollectible.
1. Prepare
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.
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