Problem 19-5, Concluded
Event Fund Journal Entry
(8) Plant Fund for Fund Balance—Restricted …………………………. 2,770,000
Retirement of Cash …………………………………………………… 2,770,000
(9) Investment Land ……………………………………………………….. 200,000
in Plant Buildings …………………………………………………. 350,000
(11) Unexpended Cash ………………………………………………………. 100,000
Plant Fund Fund Balance—Restricted …………………….. 100,000
To record contribution for first editions.
(12) Unexpended Fund Balance—Unrestricted ………………………. 60,000
Plant Fund Fund Balance—Restricted …………………………. 100,000
19–17 Ch. 19—Problems
PROBLEM 19-6
(1) (a) Cash …………………………………………………………………………….. 90,000
Revenues—Temporarily Restricted Contributions ………….. 45,000
Revenues—Permanently Restricted Contributions …………. 45,000
Endowment Investments …………………………………………………. 45,000
Cash ……………………………………………………………………….. 45,000
Tuition and Fees) ………………………………………………………. 9,000
Allowance for Uncollectible Tuition and Fees …………… 9,000
(d) Cash …………………………………………………………………………….. 6,000
Revenues—Unrestricted Investment Income ………………… 6,000
(e) Cash …………………………………………………………………………….. 75,000
State Appropriations Receivable………………………………….. 75,000
State Appropriations Receivable ………………………………………. 40,000
Problem 19-6, Continued
(h) Expenses—Instruction …………………………………………………….. 500,000
Expenses—Research ……………………………………………………… 400,000
Expenses—Institutional Support ……………………………………….. 100,000
Expenses—Student Aid …………………………………………………… 100,000
Expenses—Student Services …………………………………………… 200,000
Expenses—Operation and Maintenance of Plant ………………… 500,000
19–19 Ch. 19—Problems
Problem 19-6, Concluded
(2) Washbud Private University
Statement of Activities
For Year Ended June 30, 2019
Temporarily Permanently
Unrestricted Restricted Restricted Total
Changes in net assets:
Revenues and gains:
Tuition and fees ………………………………………… $1,900,000 $1,900,000
Contributions …………………………………………….. 30,000 $ 75,000 $45,000 150,000
Government appropriations, grants, and
contracts ……………………………………………… 40,000 40,000
Endowment income …………………………………… 7,000 7,000
PROBLEM 19-7
(1) Journal entries:
(a) Cash …………………………………………………………………………….. 20,000,000
Bonds Payable ………………………………………………………….. 20,000,000
Problem 19-7, Continued
(d) Building ………………………………………………………………………. 25,000,000
Construction in Progress………………………………………….. 7,000,000
Cash …………………………………………………………………….. 16,000,000
Retained Percentage—Liability to Contractor ……………… 2,000,000
Reclassifications Out—Temporarily Restricted—Satisfaction
of Plant Restrictions ………………………………………………… 5,000,000
Reclassifications In—Unrestricted—Satisfaction
of Plant Restrictions ……………………………………….. 5,000,000
(e) Mortgage Payable ………………………………………………………… 2,000,000
Expenses—Operation and Maintenance of Plant
(Interest Expense) ………………………………………………….. 800,000
Problem 19-7, Concluded
(2) Kronke Private University
Statement of Activities
For Period Ended June 30, 2018
Temporarily Permanently
Unrestricted Restricted Restricted Total
Changes in net assets:
Revenues and gains:
Contributions …………………………………………… $ 460,000 $ 5,700,000 $6,160,000
Other investment earnings ………………………… 0 10,000 10,000
Total unrestricted revenues and gains …… $ 460,000 $ 5,710,000 $ 0 $6,170,000
PROBLEM 19-8
(1) Closing entries:
Each asset Revenues—Tuition and Fees ……………………………….. 2,500,000
class is closed Revenues—Government Appropriations ………………… 700,000
separately. Revenues—Unrestricted Contributions ………………….. 365,000
Revenues—Unrestricted Other Investment Income …. 150,000
Reclassifications In—Unrestricted—Satisfaction of
Time Restrictions ……………………………………………. 50,000
Unrestricted Net Assets ………………………………… 745,000
Expenses—Research ……………………………………… 840,000
Expenses—Instruction …………………………………….. 1,130,000
Unrestricted Net Assets …………………………………….. 275,000
Expenses—Auxiliary Enterprises ………………………. 575,000
Revenues—Temporarily Restricted Contributions …… 100,000
Revenues—Temporarily Restricted Endowment
Income ………………………………………………………….. 15,000
Revenues—Temporarily Restricted Net Realized
Gains on Endowment ………………………………………. 25,000
Temporarily Restricted Net Assets …………………….. 235,000
Reclassifications Out—Temporarily Restricted—
Satisfaction of Program Restrictions ………………. 75,000
Reclassifications Out—Temporarily Restricted—
Permanently Restricted Net Assets ……………. 500,000
19–23 Ch. 19—Problems
Problem 19-8, Concluded
(2) Excel Private College
Statement of Activities
For Year Ended December 31, 2018
Temporarily Permanently
Unrestricted Restricted Restricted Total
Changes in net assets:
Revenues and gains:
Tuition and fees ……………………………………………. $2,500,000 $2,500,000
Net assets released from restrictions:
Satisfaction of program restrictions ……………………… $ 75,000 $ (75,000) $ 0
Satisfaction of equipment acquisition restrictions ….. 250,000 (250,000) 0
Satisfaction of time restrictions …………………………… 50,000 (50,000) 0
Auxiliary enterprises ………………………………………….. 575,000 575,000
Total expenses …………………………………………….. $3,920,000 $ 0 $ 0 $3,920,000
Increase (decrease) in net assets ………………. $ 470,000 $(235,000) $ 500,000 $ 735,000
PROBLEM 19-9
Excel Private College
Statement of Financial Position
December 31, 2018
Assets:
Cash ………………………………………………………………………………………………. $ 255,000
Accounts receivable …………………………………………………………………………. 625,000
Contributions receivable ……………………………………………………………………. 185,000
Liabilities:
Accounts payable …………………………………………………………………………….. $ 120,000
Amounts held on behalf of others ………………………………………………………. 250,000
Long-term debt ………………………………………………………………………………… 660,000
PROBLEM 19-10
(2) c The $300,000 is part of unrestricted net assets because there are no external donor
restrictions on the use of the funds.
(4) b To meet GAAP, reporting must be on the accrual basis.
(6) a Report as unrestricted nonoperating revenues at fair value.
Problem 19-10, Concluded
(8) a Charity allowances and discounts are contra-revenue accounts.
(10) b The valuation allowance must be decreased by $40,000 in order for the allowance bal-
ance to be $10,000 at the end of 2020.
PROBLEM 19-11
(1) c This is an internal designation of unrestricted resources. Only donor-imposed restricted
contributions are temporarily or permanently restricted.
(3) a The release of restrictions will be reported as operating expenses are incurred.
(5) b This is revenue from sales or services to persons other than patients.
(7) d Only donor-imposed external stipulations are restrictions.
(9) d Earnings are available for expenditure but must be spent on specific items. Thus, they
are temporarily restricted.
PROBLEM 19-12
(1) Bayshore Community Health Care Association
Statement of Activities
For Year Ended June 30, 2018
Temporarily Permanently
Unrestricted Restricted Restricted Total
Total revenue …………………………………………………. $ 65,000 $20,000 $ 0 $ 85,000
Net assets released from restrictions:
Satisfaction of program restrictions …………………………. $ 5,000 $ (5,000) $ 0
Total public support, revenue, and other support …………. $401,000 $30,000 $ 0 $431,000
Expenses:
Problem 19-12, Concluded
(2) Bayshore Community Health Care Association
Statement of Financial Position
June 30, 2018
Assets:
Cash …………………………………………………………………………………………. $ 40,000
Pledges receivable (net of $3,000 allowance) ………………………………… 9,000
Bequest receivable ……………………………………………………………………… 5,000
Accrued interest receivable ………………………………………………………….. 1,000
Liabilities:
Accounts payable and accrued expenses ………………………………………. $ 51,000
Refundable deposits …………………………………………………………………… 2,000
Total liabilities ……………………………………………………………………….. $ 53,000
Net assets:
PROBLEM 19-13
Prospect Private Hospital
Statement of Activities
For Year Ended December 31, 2018
Temporarily Permanently
Unrestricted Restricted Restricted Total
Patient service revenues (net of $1,543,500 contractual
adjustments and charity care) ………………………………. $8,505,700 $8,505,700
Net assets released from restrictions:
Satisfaction of plant acquisition restrictions ……………. 220,000 (220,000) 0
Satisfaction of program restrictions ………………………. 125,000 (125,000) 0
Total operating revenue and other support …………. $9,578,700 $ (120,000) $ 0 $9,458,700
Nonoperating revenues:
Interest income …………………………………………………..
Contributions ……………………………………………………… $ 100,200 $ 540,000 $ 150,000 $ 790,200
Investment income ……………………………………………… 107,000 107,000
Endowment income ……………………………………………. 12,000 25,000 37,000
PROBLEM 19-14
Lakeside Hospital
Statement of Cash Flows
For Year Ended December 31, 2018
Cash flows from operating activities:
Cash received from patients ……………………………………………………………… $ 2,061,900
Cash received from third-party payors ………………………………………………… 6,500,000
Cash received from operation of gift shop …………………………………………… 517,700
Cash received from unrestricted gifts ………………………………………………….. 323,500
Cash paid to employees ……………………………………………………………………. (1,151,000)
PROBLEM 19-15
Lakeside Hospital
Reconciliation of Change in Net Assets
to Net Cash Provided by Operating Activities
For Year Ended December 31, 2018
Change in net assets …………………………………………………………………………….. $1,635,200
Adjustments to reconcile change in net assets to net cash provided by
operating activities:
Depreciation and amortization …………………………………………………….. 422,500
Noncash gifts and bequests ……………………………………………………….. (37,500)