A. In approximately 30 to 90 words identify the financial statements that must be prepared by a private college or university and those that must be prepared by a public college or university.
B. Research a current article regarding accounting in government. and write a summary of the article in 350 to 700 words applying concepts you've learned in this course to assessing the content of the article and any outcomes the article describes.
C. Private College Transactions. Steiner College's statement of financial position for the year ended June 30, 2016, is presented here. Steiner is a private college.
The following transaction information (amounts in thousands) pertains to the year ended June 30, 2017.
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 unrestricted cash contributions of $2,080, pledges to be collected in 2018 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
6. 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 temporarily restricted net assets.
7. The ending balance in Accounts Payable and Accrued Liabilities was $1,935.
8. Investment earnings received for the period were $3,960, of which $2,070 was temporarily restricted.
9. 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 temporarily restricted net assets, $1,610 was related to permanently restricted net assets, the remainder was related to unrestricted net assets).
10. Nominal accounts were closed.
Required
a. Prepare journal entries in good form to record the foregoing transactions for the year ended June 30, 2017.
b. Prepare a statement of activities for the year ended June 30, 2017.
D. During its current fiscal year, Evanston General Hospital, a not-for-profit health care organization, had the following revenue-related transactions (amounts summarized for the year).
1. Services provided to inpatients and outpatients amounted to $9,600,000, of which $450,000 was for charity care, $928,000 was paid by uninsured patients, and $8,222,000 was billed to Medicare, Medicaid, and insurance companies.
2. Donated pharmaceuticals and medical supplies valued at $265,000 were received and utilized as general expenses.
3. Medicare, Medicaid, and third-party payors (insurance companies) approved and paid $5,365,000 of the $8,222,000 billed by the hospital during the year (see transaction 1).
4. An unconditional contribution of $5,000,000 was received in cash from a donor to construct a new facility for care of Alzheimers patients. The full amount is expendable for that purpose. No activity occurred on this project during the current year.
5. A total of $965,000 was received from the following activities/sources: cafeteria and gift shop sales, $710,000; medical seminars, 125,000; unrestricted transfers from the Evanston General Hospital Foundation, $75,000; and fees for medical transcripts, $55,000.
6. Uncollectible accounts totaling $3,250 were written off. The allowance for uncollectible receivables was increased by $1,170.
Required
a. Record the preceding transactions in general journal form.
b. Prepare the unrestricted revenues, gains, and other supportsection of Evanston General Hospital's statement of operations for the current year, following the format in Illustration 16-4.