11–8.Presented below are the closing entries for Lee College, a private not-for-profit, for the year ended December 31, 2014. Debits Credits Revenues—Unrestricted—Tuition and Fees $11,000,000
11–8.Presented below are the closing entries for Lee College, a private not-for-profit, for the year ended December 31, 2014.
| Debits | Credits | |
| Revenues—Unrestricted—Tuition and Fees | $11,000,000 | |
| Revenues—Unrestricted—Unrestricted Income on Endowment Investments | 40,000 | |
| Revenues—Unrestricted—Sales and Services of Auxiliary Enterprises | 5,500,000 | |
| Revenues—Unrestricted—Contributions | 100,000 | |
| Reclassifications to Unrestricted Net Assets—Satisfaction of Program Restrictions | 720,000 | |
| Reclassifications to Unrestricted Net Assets—Satisfaction of Plant Acquisition Restrictions | 1,080,000 | |
| Net Assets—Unrestricted | 110,000 | |
| Tuition Discount—Unrestricted—Student Aid | $ 375,000 | |
| Instruction Expense | 7,000,000 | |
| Research Expense | 4,500,000 | |
| Public Service Expense | 1,200,000 | |
| Institutional Support Expense | 1,600,000 | |
| Student Services Expense | 150,000 | |
| Auxiliary Enterprise Expense | 3,725,000 | |
| Revenues—Temporarily Restricted—Contributions | 1,500,000 | |
| Revenues—Temporarily Restricted—Grants | 970,000 | |
| Reclassifications From Temporarily Restricted Net Assets—Satisfaction of Program Restrictions | 720,000 | |
| Reclassifications from Temporarily Restricted Net Assets—Satisfaction of Plant Acquisition Restrictions | 1,080,000 | |
| Net Assets—Temporarily Restricted | 750,000 | |
| Revenues—Permanently Restricted—Contributions | 2,540,000 | |
| Gains on Long-Term Investments | 750,000 | |
| Net Assets—Permanently Restricted | 3,290,000 |
Assume the January 1, 2015, net asset balances are as follows: $1,000,000 unrestricted net assets; $300,000 temporarily restricted net assets; and $1,760,000 permanently restricted net assets.
a.Prepare a Statement of Activities using the format presented in Illustration 10–2.
b.Prepare a Statement of Unrestricted Revenues, Expenses, and Other Changes in Unrestricted Net Assets together with a Statement of Changes in Net Assets.
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