Chapter 15 - Accounting for Colleges and Universities

CHAPTER 15: ACCOUNTING FOR COLLEGES AND UNIVERSITIES

OUTLINE Number 'ue"$io(": 15-1 15-2 15-" 15-$ 15-5 15-! 15-, 15-. 15-/ 15-11 C!"e": 15-1 15-2 15-" Topic Type T!"# S$!$u" %re: 15 e& New 1!-2 1!-" New New New New 1!-. New 1!-11 '(ercise 1!-1 1!-2 New 1!-1 revised New 1!-" revised 1!-$ 1!-5 revised 1!-! revised 1!-,

Financial statements estricted gifts and grants Net asset categories %ad de&ts *rant revenue +ledges -upport functions -plit-interest agreements U+0IFA +erformance measures Annual reportInternet Comparison of pu&lic vs2 private universities U+0IFA

Identify Contrast #istinguish '(plain) compare '(plain) identify '(plain '(plain #efine) compare '(plain #escri&e '(amine Analy3e esearch) analy3e 0ultiple Choice 5's) F5's) F5's) F5's Financial statements Financial statements

E)erci"e" Prob*em": 15-1 4arious 15-2 +rivate university transactions 15-" +rivate university transactions 15-$ +u&lic university transactions 15-5 +u&lic and private university transactions 15-! +rivate university trial &alance to F15-, +u&lic university trial &alance to F-

15-1

Chapter 15 - Accounting for Colleges and Universities

CHAPTER 15:
Answers to 6uestions

ACCOUNTING FOR COLLEGES AND UNIVERSITIES

15-12 FA-% standards indicate that private colleges and universities are to prepare a statement of financial position or a &alance sheet) a statement of activities) and a statement of cash flows2 -imilar to for-profit entities) private colleges and universities are allowed a great deal of fle(i&ility in preparing statements2 For e(ample) private entities can use a multior single-step statement of activities and they can use the direct or indirect method of preparing the statement of cash flows2 *A-% standards indicate that pu&lic colleges and universities are to prepare a statement of net position or a &alance sheet7 a statement of revenues) e(penses) and changes in net position7 and a statement of cash flows2 Although the *A-% does allow fle(i&ility in preparation of the financial statements it provides more structure than the FA-%2 For e(ample) pu&lic entities are re8uired to identify operating and nonoperating activities on the statement of revenues) e(penses) and changes in net position2 Additionally) pu&lic entities are re8uired to use the direct method when preparing the statement of cash flows2 15-22 Restricted gifts and grants are those su&9ect to limitations placed on them &y persons or organi3ations outside the institution in none(change transactions2 :ypically restricted gifts and grants of a college or university are restricted for research) scholarships and fellowships) loans) de&t service) or ac8uisition of capital assets2 +u&lic colleges and universities identify restricted gifts and grants as restricted net position2 estricted net position is further divided to identify none(penda&le or e(penda&le assets2 *A-% standards provide additional guidance in accounting for none(change transactions2 Under the FA-% standards employed &y private colleges and universities) restricted gifts and grants are recorded as support in the period in which the gift is made) and then classified as to whether the contri&ution increases temporarily or permanently restricted net assets2 As e(penses are incurred for the purpose or time period stipulated &y the donor) then net assets are ;released from restrictions< and treated as an addition to unrestricted net assets of the current period2 15-"2 :he FA-% re8uires that private colleges and universities identify donor=contri&utor restrictions on net assets as temporarily restricted or permanently restricted2 :he *A-% does not utili3e the same categories7 however) it does provide that within the restricted category of net position) pu&lic colleges and universities should identify net position as none(penda&le or e(penda&le2 None(penda&le net position includes those net resources re8uired to &e maintained in perpetuity7 thus) it is similar to the permanently restricted net asset category used &y private colleges and universities2 '(penda&le net position includes those net resources restricted &y e(ternal donors=contri&utors as to time or purpose >similar to temporarily restricted net assets?2 In addition) and unli@e temporarily restricted net assets of private colleges and universities) e(penda&le net position includes net position restricted &y creditors) law) or regulation2

15-2

Chapter 15 - Accounting for Colleges and Universities Ch2 15) Answers >ContAd?

15-$2 +rivate colleges and universities follow FA-%=NACU%B guidance and record &ad de&ts as a direct deduction to the revenue account2 :hus a private entity would de&it :uition and Fees for the estimated &ad de&ts and credit an account such as Allowance for #ou&tful Accounts2 In contrast pu&lic colleges and universities use a contra-revenue account) such as +rovision for %ad #e&ts) with a credit to an allowance account2 :he end result is that for reporting purposes) &oth private and pu&lic entities report a net revenue amount that has &een ad9usted for &ad de&ts2 :he :uition and Fees eceiva&le account would &e shown net of the allowance for any uncollecti&le amounts2 Under FA-% standards a for-profit college or university would record the estimated &ad de&ts as an operating e(pense2 :he 9ournal entry to record the &ad de&t would &e a de&it to %ad #e&t '(pense with a credit to Allowance for Uncollecti&le Accounts2 In this situation) revenue has not &een ad9usted to reflect the estimated &ad de&ts7 however) the :uition and Fees eceiva&le account would &e shown net of the allowance for any uncollecti&le amounts2 >NoteC Although for-profit accounting is not covered in the te(t&oo@) students should &e aware of how for-profit or corporate entities account for &ad de&t e(pense2? 15-52 Not all grants are recorded as none(change transactions or contri&utions2 If the grant re8uires performance on the part of the college or university the receipt of the grant would &e recorded as an e(change or revenue transaction2 An e(ample would &e a research grant from the federal government in which the government retains the rights to any patents or other products produced &y the grant2 15-!2 :he assumption is that the multi-year pledge meets the conditions for recognition2 If it does) the multi-year pledge is reported as an asset that can &e divided into a current portion >due within one year of the fiscal year end? and a long-term portion >to &e received after one fiscal year?2 For the current portion) the college can report the pledge at its net reali3a&le value >i2e2) the gross amount less an estimated uncollecti&le amount?2 *enerally) the long-term portion of the pledge would &e reported at fair value2 FA-% ASC .21 or .25-11 provides several fair value methods that can &e used to report pledges2 0ulti-year pledges would &e considered temporarily restricted net assets2 15-,2 Although the NACU%B chart of accounts does not clearly identify program and support functions) under FA-% standards private colleges and universities are still re8uired to provide program and support information2 FA-% allows that if the information a&out program and support is not provided on the face of the financial statements it should &e provided in the notes2 NACU%B recommends that those using its chart of accounts provide disclosure information that clearly identifies program and support functions2 15-.2 An annuity agreement is a type of split-interest agreement2 Under the agreement the donor provides assets to the college or university) and the college or university periodically pays a fi(ed amount to the donor or other designated &eneficiary for a specified period or lifetime of the &eneficiary2 A life interest fund is also a type of splitinterest agreement7 however) the amount the donor or designated &eneficiary receives

15-"

Chapter 15 - Accounting for Colleges and Universities Ch2 15) Answers) 15-. >ContAd?

under a life interest fund is varia&le and limited to the income generated &y the donated assets2 :he designated &eneficiary >or donor? will receive income until the &eneficiary or donorAs death) at which time the income reverts to the college or university2 15-/2 U+0IFA stands for the Uniform +rudent 0anagement of Investment Funds Act2 :he Act provides legal guidance to not-for-profit organi3ations on the management) investment and e(penditure of funds held &y the organi3ations for what the U+0IFA terms charita&le purposes >this includes endowment funds?2 U+0IFA is important to colleges and universities since they are li@ely &ound &y its re8uirements) given that $, states have adopted U+0IFA and most colleges and universities have endowment funds and=or are associated with NF+ foundations2 :here are many provisions in U+0IFA that students might identify as &eing important to colleges and universities2 :wo rather significant provisions relate to honoring of donor restrictions on contri&uted assets and spending levels of endowment funds2 :he ActAs provisions allow for a modification or release of endowment restrictions2 For e(ample) the foundation of a college or university can change without court approval a restriction on an endowment if the endowment is small >less than D25)111? or old >over 21 years?2 Additionally) the Act provides guidance on e(penditure provisions for endowment funds) allowing for safeguards against e(cessive e(penditures2 No) U+0IFA generally applies to not-for-profit organi3ations that receive funds for charita&le purposes7 therefore) many organi3ations other than colleges and universities are affected &y U+0IFA2 15-112 :he financial community evaluates the via&ility) return on ;investment)< and leverage of colleges and universities that issue ta(-e(empt de&t as measures of financial performance2 Nonfinancial measures that can &e used include faculty productivity) num&er of graduates) satisfaction of alumni) or 9o& placements2 0ost informative for users) would &e outcome measures of the ;value added< to the student through the educational process2 :hese measures would include items such as performance on national tests >e2g2) the C+A e(am?) or other such assessments of the @nowledge and s@ills that ma@e up the institutionAs educational goals2 -olutions to Cases 15-12 a. If the school is a pu&lic college or university it should follow the *A-% standards2 :here are many ways a student could identify the *A-% standards from the financial reports) includingC the presence of an 0#EA7 a statement of net position with the net position classifications) net investment in capital assets) restricted) and unrestricted7 a statement of revenues) e(penses) and changes in net position separated into operating and nonoperating activities7 and a statement of cash flows prepared using the direct method and four categories of cash flows2 If the school is a private college or university it should &e following FA-% standards2 Again) there are many ways a student could identify FA-% standards

15-$

Chapter 15 - Accounting for Colleges and Universities Ch2 15) -olutions) Case 15-1 >ContAd?

from the financial reports) includingC a statement of financial position with the net asset categories permanently restricted) temporarily restricted) and unrestricted7 a statement of activities identifying changes to net asset categories and identifying net assets released from restrictions7 and a statement of cash flow prepared using three categories of cash flows2 b. :here will pro&a&ly &e a mi( of answers for this 8uestion2 A num&er of colleges and universities appear to use a com&ination of NACU%B and other classifications for reporting revenues and e(penses2 -tudents should &e a&le to identify instances when NACU%B is applied from the information provided in the chapter2 Again) the answers will vary &ased on the financial reports reviewed2 :he answer should generally &e yes) reporting standards are &eing followed2 emem&er that reporting formats can vary somewhat and still &e in compliance with reporting standards2 %y comparing financial statements to the e(amples in the chapter) students should &e a&le to identify several instances where the college or university is in compliance with reporting standards2 For an e(ample of how to calculate the percentage of tuition and fees to total revenues see the solution for Case 15-22 :he percentage of student discounts and=or scholarships to tuition and fees should &e calculated as student discounts and scholarships divided &y gross tuition and fees2 :he discounts and scholarships should &e displayed on the face of the financial statements or in the notes to the financial statements2 :his will vary &y college and university2 Information to calculate the percentage should &e found in the statement of revenues) e(penses) and changes in net position or the statement of activities2 Fhen searching for information to calculate the percentage it is important to remem&er that grants and contracts can &e operating or nonoperating) and restricted or unrestricted2 :his will vary &y college and university2 :he information for this calculation should &e availa&le in the net position=assets section of the statement of net position or statement of financial position2 +u&lished annual reports should include an audit of the financial statements or a statement indicating that the financial statements are unaudited2 :he private college reports on changes in unrestricted) temporarily restricted) and permanently restricted net assets presented in three columns2 4on College uses a single-step format) wherein a total for all revenues is ad9usted for the total of all e(penses2 :he pu&lic university reports on the changes in total >&oth unrestricted and restricted? net position) distinguished &y operating and nonoperating revenues

c.

d.

e.

f.

g. 15-22 a2

15-5

Chapter 15 - Accounting for Colleges and Universities Ch2 15) -olutions) Case 15-2 >ContAd?

and e(penses2 All e(penses of the private school are presented in the unrestricted column) while revenues and e(penses of %oca %ay -tate University are displayed in one column2 b2 :he proportion of total revenue from tuition and fees) state appropriations) and other sources are calculated &elowC 4on College %oca %ay -tate :uition and fees $$G 22G -tate appropriations 1G 22G *ifts and contri&utions 12G $G CalculationsC 4on College :uition and fees >net?C D"21)1,1=D,2!)12$ -tate appropriationC Contri&utionsC D/1)!//=D,2!)12$

H $$G H 1G H 12G

%oca %ay -tate College :uition and fees >net?C D1!1)/,.=>D$15)!2$ID"1/)"/.ID1/)"/2? H 22G -tate appropriationC >D2$,)./5ID11$?=>D$15)!2$ID"1/)"/.ID1/)"/2? H ""G Contri&utionsC >D2!)5/1ID2",?=>D$15)!2$ID"1/)"/.ID1/)"/2? H $G Clearly the private university is more dependent on tuition as the primary source of revenue2 As shown) one source of additional income is contri&utions) which is a much larger source of income for 4on College than %oca %ay2 %ecause a ma9or source of income for %oca %ay is state appropriations) dependence on tuition and fees is lower2 In general) dependence on state appropriations is decreasing as state institutions see@ their own sources of revenues) either through tuition increases or increases in grants and contri&utions2 c2 It appears that less than 1 percent >D2",=>D,.).2!ID!,),$2ID2!)5/1ID1/)151 ID2",?? of %oca %ayAs reported contri&utions and grants are from endowments2 :he assumption is that the additions to endowments are from outside contri&utors and not permanently restricted gains relating to increases in the value of endowment assets2 4on College received 2/ percent >D$5)1"5=>D/1)!//I D!!),"1?? of its contri&utions and grants for endowments2 It is not possi&le to tell how much either school earns on its endowment &ecause endowment income may &e restricted or unrestricted &y the donor) and in the case of %oca %ay it is reported with all other investment earnings in the account ;net investment income2< :his information is trac@ed &y NACU%B in its annual Endowment Study in which ta&les report returns and payout percentages on endowment assets2

15-!

Chapter 15 - Accounting for Colleges and Universities Ch2 15) -olutions) Case 15-2 >ContAd?

d2

-tudents will find different ways to compare the two schools and the results of their operations2 4on College had a 5 percent increase in its total net assets >D5,),!!=D1)2"/)!!,? while %oca %ay had a 15 percent increase in its net position >D1"2)2.,=D.5!).5,?2 A &etter comparison would &e to measure 4on CollegeAs change in net assets prior to the cumulative effect of a change in accounting principle2 :his is a one time event that is not reflective of ongoing performance2 If this was done) 4on College would show a , percent increase in its unrestricted net assets >D.1).$/=D1)2"/)!!,?2 -imilarly) measuring %oca %ayAs change in net position &efore ;other changes in net position< would ma@e the measure more compara&le to 4on CollegeAs unrestricted net asset figure2 Fhen this is done) %oca %ay shows a 1" percent increase in net position >D112)./5=D.5!).5,?2 -tudents should de&ate whether the financial goals of a university include increasing net assets=position2 At what point would the increase &e considered e(cessiveJ Kou would e(pect students >who support the university in the form of tuition and fees? to have a different perspective than the financial community >who are concerned that the university can pay the interest and principal of de&t?2 It would &e important to have the full set of audited financial statements) including notes) as well as comparative num&ers from the previous year to ade8uately address this 8uestion2

15-"2 a2

Kes) organi3ations in 0ichigan are su&9ect to U+0IFA2 0ichigan is one of the $, or more states that has adopted the U+0IFA2

b. :he foundation would &e su&9ect to U+0IFA since it is located in 0ichigan and it is a NF+ organi3ation that) according to U+0IFA) manages funds for a charita&le purpose2 :he charita&le purpose of the foundation would &e to provide for the advancement of education since the sole purpose of the foundation is to &enefit the university2 c. :he spending rate is not set &y U+0IFA2 U+0IFA allows NF+ organi3ations to esta&lish their own spending rate2 Lowever) it does provide guidance in the form of seven criteria that should &e considered when determining level of e(penditures or spending policies2 :he criteria from -ection $>a? of the Act >outlined in the chapter? areC
12 22 "2 $2 52 !2 ,2 #uration and preservation of the endowment fund2 :he purposes of the institution and the endowment fund2 :he general economic conditions2 :he effect of inflation or deflation2 :he e(pected total return from income and the appreciation of investments2 Bther resources of the NF+2 :he investment policy of the institution2

d2

:he donor is no longer availa&le to release the endowment from the restriction that the income &e used to study Ma@e 0ichigan fossils2 Lowever) given that it is

15-,

Chapter 15 - Accounting for Colleges and Universities Ch2 15) -olutions) Case 15-" >ContAd?

impractical for the university to carry out the intent of the restriction on the use of the income) &ecause the paleontology department no longer e(ists) U+0IFA allows that the university can notify the state regulator of a modification to the restriction that is in line with the donor wishes2 For e(ample) one argument that could &e made is that allowing the anthropology or the archeology department to &enefit from the income would &e in line with donor intent2 :he age of the endowment >51 years? might also &e used if the endowment is small enough >less than D25)111?2 -olutions to '(ercises and +ro&lems 15-12 12 2. ". $2 52 15-2. a. d2 a2 c2 c2 b2 !2 ,2 .2 /2 112 a2 b2 d2 a2 d2

ERIKSTEIN COLLEGE GENERAL JOURNAL Debits Credits TUITION AND FEES RECEIVABLE TUITION $ FEES DISCOUNT AND ALLO%ANCES TUITION AND FEES(UNRESTRICTED 1 5!"## &"!'## 2&&!5## 2!&15 55# 2!#"# 55# --5 1."!.## 1."!.## 1# 1#

1.

2.

CAS) *LEDGES RECEIVABLE CONTRIBUTIONS(UNRESTRICTED CONTRIBUTIONS(TE+*ORARIL, RESTRICTED CONTRIBUTIONS(*ER+ANENTL, RESTRICTED

-.

CAS) TUITION AND FEES RECEIVABLE

&.

DE*OSITS )ELD IN CUSTOD, FOR OT)ERS CAS)

15-.

Chapter 15 - Accounting for Colleges and Universities Ch2 15) -olutions) 15-2 >ContAd?

ERIKSTEIN COLLEGE GENERAL JOURNAL Debits 5. INSTRUCTION E/*ENSE ACADE+IC SU**ORT E/*ENSE STUDENT SERVICES E/*ENSE INSTITUTIONAL SU**ORT E/*ENSE CAS) ACCOUNTS *A,ABLE AND ACCRUED LIABILITIES NET ASSETS RELEASED FRO+ RESTRICTIONS( TE+*ORARIL, RESTRICTED NET ASSETS RELEASED FRO+ RESTRICTIONS( UNRESTRICTED .. ACCOUNTS *A,ABLE AND ACCRUED LIABILITIES CAS) 012#!1-# BB 2 15!-## tr34s. . - 122!2-# EB5 '. CAS) INVEST+ENT INCO+E(UNRESTRICTED INVEST+ENT INCO+E(TE+*ORARIL, RESTRICTED ". CONTRIBUTIONS(TE+*ORARIL, RESTRICTED ALLO%ANCE FOR DOUBTFUL *LEDGES INSTRUCTION E/*ENSE ACADE+IC SU**ORT E/*ENSE ACCU+ULATED DE*RECIATION TUITION AND FEES(UNRESTRICTED DEFERRED REVENUE 1# 1# 1"!&"# '! 2# 2.!&## 2# 2# -! .# 1!" # 2!#'# -!2## -!2## '!-2# '!-2# ".!1## 2-!-## -'!'## 2"!5## 1'#!-## 5!-## Credits

15-/

Chapter 15 - Accounting for Colleges and Universities Ch2 15) -olutions) 15-2 >ContAd?

ERIKSTEIN COLLEGE GENERAL JOURNAL Debits INVEST+ENTS UNREALI6ED GAIN ON INVEST+ENTS( UNRESTRICTED UNREALI6ED GAIN ON INVEST+ENTS( TE+*ORARIL, RESTRICTED UNREALI6ED GAIN ON INVEST+ENTS( *ER+ANENTL, RESTRICTED . T7 897se 47:i439 3887;4ts TUITION AND FEES UNRESTRICTED 0tr34s. 1 $ "5 CONTRIBUTIONS UNRESTRICTED INVEST+ENT INCO+E(UNRESTRICTED UNREALI6ED GAIN ON INVEST+ENTS UNRESTRICTED TUITION $ FEES DISCOUNT AND ALLO%ANCES INSTRUCTION E/*ENSE 0tr34s. 5 $ "5 ACADE+IC SU**ORT E/*ENSE 0tr34s. 5 $ "5 STUDENT SERVICES E/*ENSE INSTITUTIONAL SU**ORT E/*ENSE NET ASSETS(UNRESTRICTED CONTRIBUTIONS(TE+*ORARIL, RESTRICTED 0tr34s 2 $ "5 INVEST+ENT INCO+E(TE+*ORARIL, RESTRICTED UNREALI6ED GAIN ON INVEST+ENTS(TE+*ORARIL, RESTRICTED NET ASSETS(TE+*ORARIL, RESTRICTED ' # -!- # 2!#'# 5-# 2!-## &"!'## 1#&!5"# -1!22# -'!'## 2"!5## .# 2&&!& # 2!#"# 1!" # 1!.1# ' # 2!-## &!'## Credits

15-11

Chapter 15 - Accounting for Colleges and Universities Ch2 15) -olutions) 15-2 >ContAd?

ERIKSTEIN COLLEGE GENERAL JOURNAL Debits CONTRIBUTIONS(*ER+ANENTL, RESTRICTED UNREALI6ED GAIN ON INVEST+ENTS(*ER+ANENTL, RESTRICTED NET ASSETS(*ER+ANENTL, RESTRICTED T7 re893ssi<= Net Assets> NET ASSETS(TE+*ORARIL, RESTRICTED NET ASSETS RELEASED FRO+ RESTRICTIONS( UNRESTRICTED NET ASSETS(UNRESTRICTED NET ASSETS RELEASED FRO+ RESTRICTIONS( TE+*ORARIL, RESTRICTED '!-2# '!-2# '!-2# '!-2# 1!.1# 1! &5 --5 Credits

15-11

Chapter 15 - Accounting for Colleges and Universities Ch2 15) -olutions) 15-2 >ContAd?

b.

ERIKSTEIN COLLEGE
STATE+ENT OF ACTIVITIES ,EAR ENDED JUNE -#! 2#1&
Temporarily Restricted Permanentl y Restricted

Unrestricted

Total

Re?e4;es 34d @3i4s> St;de4t t;iti74 34d <ees 04et5A C74trib;ti74s I4?est:e4t i487:e U4re39iBed @3i4 74 i4?est:e4ts Net 3ssets re9e3sed <r7: restri8ti74s T7t39 re?e4;es 34d @3i4s ECDe4ses 34d 97sses> Ed;83ti7439 34d @e4er39 eCDe4ses> I4str;8ti74 A83de:i8 s;DD7rt St;de4t ser?i8es I4stit;ti7439 s;DD7rt T7t39 eCDe4ses 34d 97sses T7t39 8E34@e i4 4et 3ssets Net 3ssets! be@i44i4@ 7< tEe =e3r Net 3ssets! e4d 7< tEe =e3r

11 5!' # 2!#"# 1!" # 2!-## '!-2# 2# !-"#

5-# 2!#'# ' #

1 --5 1!.1# 1! &5

11 5!' # 2! &5 -! .# &!'## # 2#'!- 5

0'!-2#5 0-! -#5

1#&!5"# -1!22# -'!'## 2"!5## 2#2!### '!-"# 1'&!### 11"1!-"#

0-! -#5 --!#&# 12 !11#

1! &5 5-! "# 155! 25

1#&!5"# -1!22# -'!'## 2"!5## 2#2!### 5!- 5 2.1!#2# 12..!&15

N net of $48,700 in Tuition & Fees Discount and Allowances

15-12

Chapter 15 - Accounting for Colleges and Universities Ch2 15) -olutions) 15-2 >ContAd?

c.

ERIKSTEIN COLLEGE
STATE+ENT OF FINANCIAL *OSITION JUNE -#! 2#1&

Assets C3sE 34d 83sE eF;i?39e4ts T;iti74 34d <ees re8ei?3b9e 04et 7< d7;bt<;9 3887;4ts 7< 1 #5 *9ed@es re8ei?3b9e 04et 7< d7;bt<;9 D9ed@es 7< 1-##5 *reD3id eCDe4ses 34d 7tEer 3ssets I4?est:e4ts 03t <3ir ?39;e! 87st 7< 11.2!###5 *r7Dert=! D934t 34d eF;iD:e4t 04et 7< 388;:;93ted deDre8i3ti74 7< 11-#!.&#5 T7t39 3ssets Li3bi9ities 34d Net Assets Li3bi9ities> A887;4ts D3=3b9e 34d 388r;ed 9i3bi9ities DeD7sits Ee9d i4 8;st7d= <7r 7tEers De<erred re?e4;e B74ds D3=3b9e T7t39 9i3bi9ities Net Assets> U4restri8ted Te:D7r3ri9= restri8ted *er:34e4t9= restri8ted T7t39 4et 3ssets T7t39 9i3bi9ities 34d 4et 3ssets 22!2-# &!. # 1# 1& !### 1'.!"-# 1"1!-"# 2 !11# 55! 25 2..!&15 1&&-!2&5 1 "!..5 2"!.-# .!.5# 2!### 1.-!1## 2-&!2## 1&&-!2&5

15-1"

Chapter 15 - Accounting for Colleges and Universities Ch2 15) -olutions >ContAd?

15--. a.

ELI6ABET) COLLEGE GENERAL JOURNAL Debits Credits 5!25&!### . !.## 2'.!&## 5!.##!### 1#1!.'# 1#1!.'# 2!&..!2## 1!###!### 1!" 1!### 5'5!2## 1!###!### 1!# #!### ' #!### -##!###

1.

TUITION RECEIVABLE TUITION $ FEES DISCOUNT AND ALLO%ANCES INSTRUCTION E/*ENSE TUITION AND FEES(UNRESTRICTED

2.

TUITION AND FEES(UNRESTRICTED TUITION RECEIVABLE

-.

CAS) INVEST+ENTS CONTRIBUTIONS(UNRESTRICTED CONTRIBUTIONS(TE+*ORARIL, RESTRICTED CONTRIBUTIONS(*ER+ANENTL, RESTRICTED

&.

*LEDGES RECEIVABLE CONTRIBUTIONS(TE+*ORARIL, RESTRICTED CONTRIBUTIONS(*ER+ANENTL, RESTRICTED ti:e 0te:D7r3r=5 restri8ti745

0N7te> D9ed@es 3re 8799e8ted i4 tEe <;t;reG tEere<7re! D9ed@es 3re s;bHe8t t7 3

5.

CAS) AU/ILIAR, ENTER*RISES(UNRESTRICTED

&!-'# &!-'# 5!#"#!### 5!#"#!### 1!###!### 1!###!###

..

CAS) TUITION RECEIVABLE

'.

INVEST+ENTS CAS)

15-1$

Chapter 15 - Accounting for Colleges and Universities Ch2 15) -olutions) 15-" >ContAd?

ELI6ABET) COLLEGE GENERAL JOURNAL Debits ". EIUI*+ENT CAS) . INSTRUCTION E/*ENSE ADADE+IC SU**ORT E/*ENSE STUDENT SERVICES E/*ENSE INSTITUTIONAL SU**ORT E/*ENSE AU/ILIAR, ENTER*RISES E/*ENSE CAS) 1#. INSTRUCTION E/*ENSE CAS) NET ASSETS RELEASED FRO+ RESTRICTIONS( TE+*ORARIL, RESTRICTED NET ASSETS RELEASED FRO+ RESTRICTIONS( UNRESTRICTED 11. TUITION AND FEES(UNRESTRICTED ALLO%ANCE FOR DOUBTFUL ACCOUNTS INVEST+ENTS UNREALI6ED GAIN ON INVEST+ENTS( UNRESTRICTED UNREALI6ED GAIN ON INVEST+ENTS( *ER+ANENTL, RESTRICTED -!#&# "!5## 11!5&# '!2## '!2## &5#!### &5#!### &5#!### &5#!### -!5..!#&# 1! "'!### "'! "# 5#1!1-# 2!&1# .!2-&!5.# 1#!5"# 1#!5"# Credits

15-15

Chapter 15 - Accounting for Colleges and Universities Ch2 15) -olutions) 15-" >ContAd?

ELI6ABET) COLLEGE GENERAL JOURNAL Debits INSTRUCTION E/*ENSE AU/ILIAR, ENTER*RISES E/*ENSE ACADE+IC SU**ORT E/*ENSE ACCU+ULATED DE*RECIATION 12. T7 897se 47:i439 3887;4ts> TUITION AND FEES UNRESTRICTED 0tr34s. 1! 2 $ 115 CONTRIBUTIONS UNRESTRICTED AU/ILIAR, ENTER*RISES(UNRESTRICTED UNREALI6ED GAIN ON INVEST+ENTS UNRESTRICTED TUITION $ FEES DISCOUNT AND ALLO%ANCES INSTRUCTION E/*ENSE 0tr34s. 1 $ -115 ACADE+IC SU**ORT E/*ENSE 0tr34s. STUDENT SERVICES E/*ENSE INSTITUTIONAL SU**ORT E/*ENSE AU/ILIAR, ENTER*RISES E/*ENSE 0tr34s. NET ASSETS(UNRESTRICTED CONTRIBUTIONS TE+*ORARIL, RESTRICTED 0tr34s. 2 $ -5 NET ASSETS(TE+*ORARIL, RESTRICTED CONTRIBUTIONS *ER+ANENTL, RESTRICTED 0tr34s. 2 $ -5 UNREALI6ED GAIN ON INVEST+ENTS *ER+ANENTL, RESTRICTED -!#&# 1!-##!### 1!-.5!2## 1!-.5!2## $ 115 $ 115 1! "!5## . !.## &!-2'!1 # !&5# "'! "# 5#1!1-# 1--!&1# -..!2&# 1!" 1!### &!-'# 5!& 1!1-# -&!'5# &1!### 12!&5# ""!2## Credits

15-1!

Chapter 15 - Accounting for Colleges and Universities

NET ASSETS(*ER+ANENTL, RESTRICTED

1!-#-!#&#

15-1,

Chapter 15 - Accounting for Colleges and Universities Ch2 15) -olutions) 15-" >ContAd?

ELI6ABET) COLLEGE GENERAL JOURNAL Debits T7 re893ssi<= Net Assets> NET ASSETS(TE+*ORARIL, RESTRICTED NET ASSETS RELEASED FRO+ RESTRICTIONS( UNRESTRICTED NET ASSETS(UNRESTRICTED NET ASSETS RELEASED FRO+ RESTRICTIONS( TE+*ORARIL, RESTRICTED &5#!### &5#!### &5#!### &5#!### Credits

15-1.

Chapter 15 - Accounting for Colleges and Universities Ch2 15) -olutions) 15-" >ContAd?

b.
ELI6ABET) COLLEGE STATE+ENT OF ACTIVITIES ,EAR ENDED JUNE -#! 2#1&
Temporarily Restricted Permanentl y Restricted

Unrestricted

Total

Re?e4;es 34d @3i4s> St;de4t t;iti74 34d <ees 04et5A 15!&21!5-# C74trib;ti74s 1!" 1!### A;Ci9i3r= e4terDrise s39es 34d ser?i8es &!-'# U4re39iBed @3i4 74 i4?est:e4ts "!5## Net 3ssets re9e3sed <r7: restri8ti74s &5#!### T7t39 re?e4;es 34d @3i4s '!".5!&## ECDe4ses 34d 97sses> Ed;83ti7439 34d @e4er39 eCDe4ses> I4str;8ti74 A83de:i8 s;DD7rt St;de4t ser?i8es I4stit;ti7439 s;DD7rt T7t39 ed;83ti7439 34d @e4er39 eCDe4se A;Ci9i3r= e4terDrises T7t39 eCDe4ses 34d 97sses T7t39 8E34@e i4 4et 3ssets Net 3ssets! be@i44i4@ 7< tEe =e3r Net 3ssets! e4d 7< tEe =e3r

11!-.5!2##

11!-##!### -!#&#

1 5!&21!5-# &!55.!2## &!-'# 11!5&# # 1#!#"-!.&#

0&5#!###5 15!2##

1!-#-!#&#

&!-2'!1 # 1! !&5# "'! "# 5#1!1-# .! 15!'5# 1--!&1# '!#& !1.# "1.!2&# '!51"!### 1"!--&!2&#

15!2## 2##!### 11!115!2##

1!-#-!#&# 5!###!### 1.!-#-!#&#

&!-2'!1 # 1! !&5# "'!" # 5#1!1-# .! 15!'5 # 1--!&1# '!#& !1.# -!#-&!&"# 12!'1"!### 115!'52!&"#

N net of $69,600 in Tuition & Fees Discount and Allowances

15-1/

Chapter 15 - Accounting for Colleges and Universities Ch2 15) -olutions >ContAd?

15-& a.

GREEN TREE STATE UNIVERSIT, GENERAL JOURNAL Debits Credits -.2!### 2!5##!### 1-"!### 25!### 25!### -!###!###

1.

CAS) ACCOUNTS RECEIVABLE(TUITION AND FEES REVENUES(TUITION AND FEES DEFERRED REVENUE(TUITION AND FEES

2.

DEFERRED REVENUE(TUITION AND FEES REVENUES(TUITION AND FEES

-.

NO JOURNAL ENTR, IS RECORDED(T)E ELIGIBILIT, REIUIRE+ENT )AS NOT BEEN +ET.

&.

CAS) REVENUES(STATE A**RO*RIATIONS

.#!### .#!### 225!### 225!### 2##!### 2##!### &"!### &"!### -1!### 25!### .!###

5.

CA*ITAL ASSETS CAS)

..

CAS) REVENUES(GIFTS AND GRANTS

'.

E/*ENSES(INTEREST CAS)

".

CAS) INVEST+ENTS REVENUES(C)ANGES IN FAIR VALUE OF INVEST+ENTS

15-21

Chapter 15 - Accounting for Colleges and Universities Ch2 15) -olutions) 15-$ >ContAd?

GREEN TREE STATE UNIVERSIT, GENERAL JOURNAL Debits INVEST+ENTS CAS) CAS) REVENUES(INVEST+ENT INCO+E . E/*ENSES(GENERAL E/*ENSES(RESEARC) ACCOUNTS *A,ABLE ACCOUNTS *A,ABLE CAS) 011#5!### 2 12!5-'!### - 1'5!###5 GRANT RECEIVABLE REVENUES(GIFTS AND GRANTS 1#. ACCRUED LIABILITIES CAS) 11. E/*ENSES(DE*RECIATION ACCU+ULATED DE*RECIATION #!### #!### &#!### &#!### -'!### -'!### 2!5.'!### 2!5.'!### 2!5##!### -'!### 2!5-'!### 1"!### 1"!### &#!### &#!### Credits

15-21

Chapter 15 - Accounting for Colleges and Universities Ch2 15) -olutions) 15-$ >ContAd?

Debits INTEREST RECEIVABLE REVENUES(INVEST+ENT INCO+E REVENUES(C)ANGES IN FAIR VALUE OF INVEST+ENTS INVEST+ENTS *ROVISION FOR BAD DEBTS ALLO%ANCE FOR DOUBTFUL ACCOUNTS 12. REVENUES(TUITION AND FEES REVENUES(STATE A**RO*RIATIONS REVENUES(GIFTS AND GRANTS REVENUES(C)ANGES IN FAIR VALUE OF INVEST+ENTS REVENUES(INVEST+ENT INCO+E E/*ENSES(DE*RECIATION *ROVISION FOR BAD DEBTS E/*ENSES(INTEREST E/*ENSES(GENERAL E/*ENSES(RESEARC) NET *OSITION(UNRESTRICTED T7 re893ssi<= Net *7siti74> NET *OSITION(UNRESTRICTED NET *OSITION(NET INVEST+ENT IN CA*ITAL ASSETS NET *OSITION(UNRESTRICTED NET *OSITION(RESTRICTED 2##!### 1-5!### -!### 1 !25# 2!525!### .#!### 2-'!### 2!### -!### 1!25#

Credits 1!25#

-!###

2!###

#!### 2!### &"!### 2!5##!### -'!### 1.'!25#

1-5!### 2##!###

15-22

Chapter 15 - Accounting for Colleges and Universities Ch2 15) -olutions) 15-$ >ContAd?

b.

GREEN TREE STATE UNIVERSIT, STATE+ENT OF NET *OSITION JUNE -#! 2#1& ASSETS CAS) ACCOUNTS RECEIVABLE 0NET OF DOUBTFUL ACCOUNTS OF 11'!###5 INTEREST RECEIVABLE GRANT RECEIVABLE INVEST+ENTS CA*ITAL ASSETS ACCU+ULATED DE*RECIATION TOTAL ASSETS LIABILITIES ACCOUNTS *A,ABLE DEFERRED REVENUE BONDS *A,ABLE TOTAL LIABILITIES NET *OSITION NET INVEST+ENT IN CA*ITAL ASSETS RESTRICTED UNRESTRICTED TOTAL NET *OSITION 1!#1#!### &15!### &#'!25# 11!"-2!25# '5!### 1-"!### .##!### "1-!### 11! '5!### 0-.5!###5 1!.1#!### 2!.&5!25# .!### 1!25# -'!### 2.2!### 1 '2 !###

15-2"

Chapter 15 - Accounting for Colleges and Universities Ch2 15) -olutions >ContAd?

15-5 a.

*RIVATE UNIVERSIT, Debits Credits 5##!### 1!55#!### 5#!### 2!5##!### -25!### -25!### 1! "#!### 1! "#!### 5##!### 5##!### 1!.'# 1!.'#

1.

GRANT RECEIVABLE CONTRIBUTIONS(TE+*ORARIL, RESTRICTED

5##!###

2.

TUITION AND FEES RECEIVABLE TUITION $ FEES DISCOUNT AND ALLO%ANCES TUITION AND FEES(UNRESTRICTED TUITION AND FEES(UNRESTRICTED CAS)

-.

LAND I+*ROVE+ENTS CAS)

&.

CAS) CONTRIBUTIONS(*ER+ANENTL, RESTRICTED

5.

TUITION AND FEES(UNRESTRICTED ALLO%ANCE FOR DOUBTFUL ACCOUNTS

b. 1.

*UBLIC UNIVERSIT, TEe @r34t 834 47t be ;sed ;4ti9 2#15G tEere<7re! tEe ti:e reF;ire:e4t E3s 47t bee4 :et 34d re87@4iti74 is de<erred.

15-2$

Chapter 15 - Accounting for Colleges and Universities Ch2 15) -olutions) 15-5 >ContAd?

Debits 2. ACCOUNTS RECEIVABLE(TUITION AND FEES TUITION $ FEES DISCOUNT AND ALLO%ANCES REVENUE(TUITION AND FEES REVENUE(TUITION AND FEES CAS) 0N7te tE3t JEi9e di<<ere4t 3887;4t tit9es 3re ;sed! t;iti74 34d <ees -25!### 1!55#!### 5#!###

Credits

2!5##!###

-25!###

3887;4ti4@ <7r Dri?3te 34d D;b9i8 8799e@es 34d ;4i?ersities is esse4ti399= tEe s3:e.5 -. INFRASTRUCTURE CAS) 1! "#!### 1! "#!###

0N7te tE3t D;b9i8 8799e@es 34d ;4i?ersities E3?e 3 seD3r3te 83Dit39 3sset 893ssi<i83ti74 <7r i4<r3str;8t;re.5 &. CAS) REVENUE(GIFTS AND GRANTS 5##!### 5##!###

0N7te tE3t D;b9i8 8799e@es 34d ;4i?ersities d7 47t re87@4iBe tEe restri8ti74 i4 tEe re87rdi4@! b;t J7;9d reD7rt tEe 15##!### 3s restri8ted 4et D7siti74! 474eCDe4d3b9e.5 5. *ROVISION FOR BAD DEBTS ALLO%ANCE FOR DOUBTFUL ACCOUNTS 0N7te tE3t Dri?3te 8799e@es 34d ;4i?ersities dire8t9= 3dH;st tEe re?e4;e 3887;4t <7r b3d debts JEi9e D;b9i8 8799e@es 34d ;4i?ersities t=Di8399= ;se 3 874tr3-re?e4;e 3887;4t.5
15-25

1!.'# 1!.'#

Chapter 15 - Accounting for Colleges and Universities Ch2 15) -olutions >ContAd?

15-.. a.

ALLEN UNIVERSIT, STATE+ENT OF ACTIVITIES ,EAR ENDED JUNE -#! 2#1&

Temporaril y Restricted Permanentl y Restricted

Unrestricted

Total

Re?e4;es 34d @3i4s> St;de4t t;iti74 34d <ees 04et5A C74trib;ti74s Gr34ts 34d 874tr38ts I4?est:e4t i487:e A;Ci9i3r= e4terDrise s39es 34d ser?i8es G3i4 74 s39e 7< i4?est:e4ts U4re39iBed @3i4 74 i4?est:e4ts OtEer re?e4;e Net 3ssets re9e3sed <r7: restri8ti74s T7t39 re?e4;es 34d @3i4s ECDe4ses 34d 97sses> Ed;83ti7439 34d @e4er39 eCDe4ses> I4str;8ti74 Rese3r8E A83de:i8 s;DD7rt St;de4t ser?i8es I4stit;ti7439 s;DD7rt T7t39 ed;83ti7439 34d @e4er39 eCDe4se A;Ci9i3r= e4terDrises T7t39 eCDe4ses 34d 97sses T7t39 8E34@e i4 4et 3ssets Net 3ssets! be@i44i4@ 7< tEe =e3r Net 3ssets! e4d 7< tEe =e3r

.-!'5# -1#!2## 5#!5## 15-!5.# '#!### 125!&&# 1-!25# &2.!"5# 2!11-!55#

1 11''!### -2&!### 2 !5## 115#!###

.-!'5# .-'!2## -2&!### "#!### 15-!5.# '#!###

1'! 2# 0&2.!"5#5 121!5'#

-5!"&#

1' !2## 1-!25# # 2!&2#! .#

1"5!"&#

1!#&&!.-# 5'1!"## 2&#!5.# 1 -!### 2#-!-.# 2!25-!-5# 15"!'## 2!&12!#5# 02 "!5##5 -!-5-!11# 1-!#5&!.1#

121!5'# -&#!.## 1&.2!1'#

1"5!"&# "#!### 11!1.5!"&#

1!#&&!.-# 5'1!"## 2&#!5.# 1 -!### 2#-!-.# 2!25-!5# 15"!'## 2!&12!#5# "! 1# &!.'-!'1# 1&!."2!.2#

* net of $327,000 in Tuition & Fees Discount and Allowances.

15-2!

Chapter 15 - Accounting for Colleges and Universities Ch2 15) -olutions) 15-! >ContAd?

b.
ALLEN UNIVERSIT, STATE+ENT OF FINANCIAL *OSITION JUNE -#! 2#1&

Assets C3sE 34d 83sE eF;i?39e4ts T;iti74 34d <ees re8ei?3b9e 04et 7< d7;bt<;9 3887;4ts 7< 1'5!.##5 *9ed@es re8ei?3b9e 04et 7< d7;bt<;9 D9ed@es 7< 1' !###5 I4?est:e4ts 03t <3ir ?39;e5 *r7Dert=! D934t 34d eF;iD:e4t 04et 7< 388;:;93ted deDre8i3ti74 7< 1.5"!'2#5 T7t39 3ssets Li3bi9ities 34d Net Assets Li3bi9ities> A887;4ts D3=3b9e A88r;ed 9i3bi9ities DeD7sits Ee9d i4 8;st7d= <7r 7tEers De<erred re?e4;e B74ds D3=3b9e T7t39 9i3bi9ities Net Assets> U4restri8ted Te:D7r3ri9= restri8ted *er:34e4t9= restri8ted T7t39 4et 3ssets T7t39 9i3bi9ities 34d 4et 3ssets 1#-!### -'!5## 1'!5'# .2!15# ' 2!### 1!#12!22# -!#5&!.1# &.2!1'# 1!1.5!"&# &!."2!.2# 15!. &!"&# 1 51.!.## 2 .!"## 1&&!### -!2##!### 1!5-'!&&# 15!. &!"&#

15-2,

Chapter 15 - Accounting for Colleges and Universities Ch2 15) -olutions) 15-! >ContAd?

c.
ALLEN UNIVERSIT, STATE+ENT OF CAS) FLO%S FOR T)E ,EAR ENDED JUNE -#! 2#1&

C3sE F97Js <r7: ODer3ti4@ A8ti?ities> I48re3se i4 4et 3ssets> AdH;st:e4ts t7 re8748i9e i48re3se i4 4et 3ssets t7 4et 83sE ;sed b= 7Der3ti4@ 38ti?ities> I48re3se i4 t;iti74 34d <ees re8ei?3b9e 04et5 De8re3se i4 D9ed@es re8ei?3b9e De8re3se i4 3887;4ts D3=3b9e De8re3se i4 388r;ed 9i3bi9ities I48re3se i4 de<erred re?e4;e DeDre8i3ti74 G3i4 74 s39e 7< i4?est:e4ts U4re39iBed @3i4 74 i4?est:e4ts U4re39iBed @3i4s restri8ted <7r e4d7J:e4t C74trib;ti74s restri8ted <7r e4d7J:e4t Net 83sE ;sed b= 7Der3ti4@ 38ti?ities C3sE F97Js <r7: I4?esti4@ A8ti?ities> *;r8E3se 7< eF;iD:e4t *;r8E3ses 7< i4?est:e4ts *r78eeds <r7: s39e 7< i4?est:e4ts Net 83sE Dr7?ided b= i4?esti4@ 38ti?ities C3sE F97Js <r7: Fi4348i4@ A8ti?ities C74trib;ti74s restri8ted <7r e4d7J:e4ts ReD3=:e4t 7< b74ds Net 83sE ;sed <7r <i4348i4@ 38ti?ities Net de8re3se i4 83sE 34d 83sE eF;i?39e4ts C3sE 34d 83sE eF;i?39e4ts! be@i44i4@ 7< tEe =e3r C3sE 34d 83sE eF;i?39e4ts! e4d 7< tEe =e3r

"! 1# 0 !&.#5 1!5.# 02! ##5 01!12#5 .!2## -#!#'# 0'#!###5 01&-!-.#5 0-5!"&#5 015#!###5 0-.5! &#5

0--!###5 01!25#!###5 1!5##!### 21'!### 15#!### 01##!###5 5#!### 0 "! &#5 .15!5&# 1 51.!.##

15-2.

Chapter 15 - Accounting for Colleges and Universities Ch2 15) -olutions >ContAd?2

15-'. a. S)ERLOCK STATE COLLEGE STATE+ENT OF REVENUES! E/*ENSES! AND C)ANGES IN NET *OSITION FOR T)E ,EAR ENDED JUNE -#! 2#1& 0A+OUNTS IN T)OUSANDS5 Re?e4;es> ODer3ti4@ re?e4;es> St;de4t t;iti74 34d <ees 04et 7< dis87;4t $ 3997J348es5 Gr34ts 34d 874tr38ts A;Ci9i3r= e4terDrises T7t39 7Der3ti4@ re?e4;e ECDe4ses> ODer3ti4@ eCDe4ses> A83de:i8 s;DD7rt I4stit;ti7439 s;DD7rt S8E793rsEiDs 34d <e997JsEiDs eCDe4ses DeDre8i3ti74 eCDe4se A;Ci9i3r= e4terDrises eCDe4se T7t39 7Der3ti4@ eCDe4ses ODer3ti4@ 97ss N747Der3ti4@ re?e4;es 0eCDe4ses5> St3te 3DDr7Dri3ti74 I4?est:e4t i487:e I4terest eCDe4se Net 4747Der3ti4@ re?e4;es I487:e be<7re 7tEer re?e4;es! eCDe4ses! @3i4s 7r 97sses C3Dit39 3DDr7Dri3ti74s I48re3se i4 4et D7siti74 Net D7siti74! be@i44i4@ 7< tEe =e3r Net D7siti74! e4d 7< tEe =e3r

1 22!5-# 1"!1 . 1&!5 5 55!-21 5"! &# 2.!2." '!..& 5!5"# 12!1 ' 11#!.& 055!-2"5 &&!" & 1!'&5 0-'"5 &.!2.1 0 !#.'5 12!'"5 -!'1" 2#&!#'5 12#'!' -

15-2/

Chapter 15 - Accounting for Colleges and Universities Ch2 15) -olutions) 15-, >ContAd?

b.

S)ERLOCK STATE COLLEGE STATE+ENT OF NET *OSITION AS OF JUNE -#! 2#1& 0A+OUNTS IN T)OUSANDS5

Assets C;rre4t 3ssets> C3sE 34d 83sE eF;i?39e4ts I4?est:e4ts A887;4ts re8ei?3b9e 04et 7< 3997J348e <7r ;48799e8tib9e 3887;4ts 7< 11-'5 D;e <r7: st3te T7t39 8;rre4t 3ssets N748;rre4t 3ssets> C3sE 34d 83sE eF;i?39e4ts Restri8ted i4?est:e4ts DeDre8i3b9e 83Dit39 3ssets 04et 7< 388;:;93ted deDre8i3ti74 7< 12"!"5#5 N74deDre8i3b9e 83Dit39 3ssets OtEer 4748;rre4t 3ssets T7t39 4748;rre4t 3ssets T7t39 3ssets Li3bi9ities 34d Net *7siti74 C;rre4t 9i3bi9ities> A887;4ts D3=3b9e A88r;ed 9i3bi9ities De<erred re?e4;e B74ds D3=3b9e(8;rre4t D7rti74 T7t39 8;rre4t 9i3bi9ities B74ds *3=3b9e T7t39 9i3bi9ities Net D7siti74> Net i4?est:e4t i4 83Dit39 3ssets Restri8ted <7r eCDe4d3b9e> Debt ser?i8e C3Dit39 Dr7He8ts U4restri8ted T7t39 4et D7siti74

-!2'" 2 !-"'

1!"2# ' !.2. 11&!111 2.!'1. 2!-"12#!".& 55!&"1 2. 2#5!&'# -1 !5"1 2!-#. 2!#1-!'" 1!5-" 1 !.'2 2!11. 111!'"" "2!. 1 1!-#' 52!2'2 '1!5212#'!' -

15-"1

Chapter 15 - Accounting for Colleges and Universities Ch2 15) -olutions) 15-, >ContAd?

8.

S)ERLOCK STATE COLLEGE STATE+ENT OF CAS) FLO%S FOR T)E ,EAR ENDED JUNE -#! 2#1& 0DOLLARS IN T)OUSANDS5

C3sE F97Js <r7: ODer3ti4@ A8ti?ities C3sE re8ei?ed <7r t;iti74 34d <ees 04et5 Gr34ts 34d 874tr38ts C3sE re8ei?ed <r7: 3;Ci9i3r= e4terDrises *3=:e4ts t7 e:D97=ees *3=:e4ts t7 ?e4d7rs *3=:e4ts <7r s8E793rsEiDs 34d <e997JsEiDs Net 83sE ;sed i4 7Der3ti4@ 38ti?ities C3sE F97Js <r7: N7483Dit39 Fi4348i4@ A8ti?ities St3te 3DDr7Dri3ti74s C3sE F97Js <r7: C3Dit39 34d Re93ted Fi4348i4@ A8ti?ities C3Dit39 3DDr7Dri3ti74s *;r8E3ses 7< 83Dit39 3ssets I4terest D3id 74 83Dit39 debt Net 83sE ;sed i4 83Dit39 34d re93ted <i4348i4@ 38ti?ities C3sE F97Js <r7: I4?esti4@ A8ti?ities I4?est:e4t i487:e Net i48re3se i4 83sE C3sE 34d 83sE eF;i?39e4ts! be@i44i4@ 7< tEe =e3r C3sE 34d 83sE eF;i?39e4ts! e4d 7< tEe =e3r Re8748i9i3ti74 7< Net ODer3ti4@ Re?e4;es 0ECDe4ses5 t7 Net C3sE Used b= ODer3ti4@ A8ti?ities ODer3ti4@ 97ss

1 2-!.# 12! &# 1-!'.5 05"!22#5 021!'115 0'!..&5 0-'!2"15 - !" & 2#!5&# 02#!.-&5 02!# 55 02!1" 5 1!5#1! 2' 1!-51 1 -!2'"

1055!-2"5

AdH;st:e4ts t7 re8748i9e 4et 97ss t7 4et 83sE ;sed b= 7Der3ti4@ 38ti?ities> DeDre8i3ti74 eCDe4se CE34@e i4 3ssets 34d 9i3bi9ities> A887;4ts re8ei?3b9e! 4et D;e <r7: st3te A887;4ts D3=3b9e 34d 388r;ed 9i3bi9ities De<erred re?e4;e Net 83sE ;sed i4 7Der3ti4@ 38ti?ities

5!5"# 02!5'&5 1&!"&2 1! .2 01!'.-5 10-'!2"15

15-"1