The following is the preclosing trial balance for Allen University as of June 30, 2020. Additional information related to net assets and the statement of cash flows is also provided.
ALLEN UNIVERSITY Preclosing Trial Balance June 30, 2020 Debits Credits Cash and Cash Equivalents $ 516,600 Investments 3,200,000 Tuition and Fees Receivable 372,400 Allowance for Doubtful Accounts $ 75,600 Pledges Receivable 223,000 Allowance for Doubtful Pledges 79,000 Property, Plant, and Equipment 2,196,160 Accumulated Depreciation 658,720 Accounts Payable 103,000 Accrued Liabilities 37,500 Deposits Held in Custody for Others 17,570 Unearned Revenue 62,150 Bonds Payable 792,000 Net Assets—Without Donor Restrictions 3,353,110 Net Assets—With Donor Restrictions 1,320,600 Net Assets Released from Restrictions—With Donor Restrictions 426,850 Net Assets Released from Restrictions—Without Donor Restrictions 426,850 Tuition and Fees 1,290,750 Tuition and Fees Discount and Allowances 327,000 Contributions—Without Donor Restrictions 310,200 Contributions—With Donor Restrictions 327,000 Grants and Contracts—With Donor Restrictions 324,000 Investment Income—Without Donor Restrictions 50,500 Investment Income—With Donor Restrictions 29,500 Other Revenue 13,250 Auxiliary Enterprise Sales and Services 153,560 Gain on Sale of Investments 70,000 Unrealized Gain on Investments 179,200 Instruction Expense 1,044,630 Research Expense 571,800 Academic Support Expense 240,560 Student Services Expense 193,000 Institutional Support Expense 203,360 Auxiliary Enterprise Expenses 158,700 Total $ 9,674,060 $ 9,674,060
Net assets released from donor restrictions totaled $426,850. The gain resulting from sale of investments was unrestricted. Thirty percent of the unrealized gain is related to net assets restricted for programs, with the remainder related to net assets without donor restrictions.
Additional information is as follows:
- The balance in cash and cash equivalents as of July 1, 2019, was $615,540.
- 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.
- Unearned 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 (at a gain of $70,000) and others were purchased for $1,250,000.
- Net assets without donor restrictions were used to purchase equipment at a cost of $33,000.
- Prepare a statement of cash flows for the year ended June 30, 2020. (List of cash outflows should be indicated by a minus sign.)