Question

Steiner College’s statement of financial position for the year ended June 30, 2019, is presented here. Steiner is a private college.

STEINER COLLEGE
Statement of Financial Position
June 30, 2019
(amounts in thousands)
Assets
Cash and cash equivalents				$	734
Short-term investments					7,666
Tuition and fees receivable (net of doubtful accounts of $12)					230
Pledges receivable (net of doubtful accounts of $280)					5,872
Prepaid assets					1,364
Property, plant, and equipment (net of accumulated depreciation of $104,240)					281,404
Investments (at fair value, cost of $162,000)					158,400
Total assets				$	455,670
Liabilities and Net Assets
Liabilities:
Accounts payable and accrued liabilities				$	21,130
Deposits held in custody for others					700
Unearned revenue					900
Bonds payable					99,000
Total liabilities					121,730
Net Assets:
Without donor restrictions	$	104,000
With donor restrictions		229,940
Total net assets					333,940
Total liabilities and net assets				$	455,670

The following transaction information (amounts in thousands) pertains to the year ended June 30, 2020.

1. During the year, charges for tuition and fees were $244,500; scholarships were $16,300; and tuition waivers for scholastic achievement were $5,100. After payment was received, tuition refunds of $11,200 were given. Tuition waivers of $17,300 for students serving as teaching assistants for instruction were accrued.
2. The college received cash contributions without donor restrictions of $2,080, pledges to be collected in 2021 of $550, and cash contributions to the endowments of $335. It also collected $820 of Pledges Receivable that were unrestricted.
3. Collections on Tuition and Fees Receivable totaled $222,600.
4. Net deposits returned to students totaled $10.
5. Expenses were incurred for:

Instruction	$	86,100
Academic support		23,300
Student services		37,700
Institutional support		28,500

Related to the expenses incurred: prepaid assets of $534 were used, $4,776 of the expenses were accrued, and the remaining expenses were paid. Expenses incurred resulted in the release of $7,320 in net assets with donor restrictions.

6. The ending balance in Accounts Payable and Accrued Liabilities was $1,935.
7. Investment earnings received for the period were $3,960, of which $2,070 was donor restricted for scholarships.
8. Adjusting entries for the period were made to increase Allowance for Doubtful Accounts by $20, to record depreciation expense of $26,400 (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 $4,700 ($790 was related to investments restricted for scholarships, $1,610 was related to the permanent endowment, the remainder was related to net assets without donor restrictions).
9. Nominal accounts were closed.

Required

1. a-1. Prepare journal entries to record the foregoing transactions for the year ended June 30, 2020.
2. a-2. Prepare closing entry for the year ended June 30, 2020.
3. b. Prepare a statement of activities for the year ended June 30, 2020.
4. c. Prepare a statement of financial position for the year ended June 30, 2020.

Answer 1