ACCT567 Horton University Problem 16–6

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ACCT567 Horton University Problem 16–6
Net assets released from temporary restrictions totaled $26,850. There were no restrictions on the investment…

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Description

ACCT567 Horton University Problem 16–6

ACCT567 Horton University Problem 16–6

Financial Statements Private A+

The following is the pre-closing trial balance for Horton University as of June 30, 2011. Additional information related to net assets and the statement of cash flows is also provided.

Additional information

Net assets released from temporary restrictions totaled $26,850. There were no restrictions on the investment income earned. Twenty percent of the unrealized gain is related to permanently restricted net assets and 10 percent is related to temporarily restricted net assets, with the remainder related to unrestricted net assets.

The differences between the beginning and ending balances were as follows:

Tuition and Fees Receivable increased by $10,230.

Pledges Receivable decreased by $1,560.

Allowance for Doubtful Accounts was increased by $770 (the bad debt was netted against Tuition and 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 retire bonds.

Investments were sold for $1,500,000 and others were purchased for $1,250,000.

Required

  1. Prepare a statement of activities for the year ended June 30, 2011.
  2. Prepare a statement of financial position for June 30, 2011.
  3. Prepare a statement of cash flows for the year ended June 30, 2011.

16-6. a. Preview:

                                                                             HORTON UNIVERSITY

STATEMENT OF ACTIVITIES

YEAR ENDED JUNE 30, 2011

  Temporarily Permanently  
Unrestricted Restricted Restricted Total
Revenues and gains:       
  Student tuition and fees

   (net)*

$   192,750      $   192,750
  Contributions  310,200  $ 77,000      387,200
  Grants and contracts324,000  121,800      445,800
  Investment income11,500 11,500
  Auxiliary enterprise sales and

    services

53,560 53,560

…..