Eastern State College had the following trial balance as of July 1, 2011, the first day of its…

Eastern State College had the following trial balance as of July 1, 2011, the first day of its fiscal year (in thousands):

During the fiscal year ended June 30, 2012, the following transactions occurred (amounts are in thousands):

1. Student tuition and fees were assessed in the amount of $18,350. Scholarship allowances were made, for which no services were required, in the amount of $1,260. Graduate and other assistantships were awarded, for which services were required, in the amount of $1,420. All scholarship and assistantship allowances were credited against student’s bills. Collections were made on account in the amount of $15,700.

2. The $500 in deferred revenues relate to cash collected prior to June 30, 2011, and to tuition revenue that should be recognized in the current year. Also $550 of the $18,300 assumed in (1) above applies to fees that should be recognized as revenue in the year ended June 30, 2013 (i.e., next year).

3. State appropriations were received in cash as follows: $13,020 for general operations and $800 for capital outlay, set aside for specific projects.

4. Federal grants and contracts, for restricted purposes, were received in cash in the amount of $2,310. State and local grants and contracts, also for restricted purposes, were received in cash in the amount of $930.

5. Revenues from auxiliary enterprise operations amounted to $12,300, of which $12,100 was received in cash.

6. Contributions were received in cash as follows: unrestricted, $650; restricted for capital projects, $300; restricted for other purposes, $500.

7. Donors contributed $600 for endowments, the principal of which may not be expended. The income from these endowments is all restricted for operating purposes. The cash was immediately invested.

8. Interest receivable at the beginning of the year was collected.

9. During the year, investment income was earned on investments whose income is unrestricted in the amount of $200, of which $175 was received in cash. Investment income was earned on investments whose income is restricted in the amount of $1,500, of which $1,250 was received in cash.

10. All accounts payable and accrued liabilities as of the end of the previous year were paid in cash at year-end, using unrestricted cash.

11. Unrestricted expenses amounted to: salaries—faculty, $14,123; salaries— exempt staff, $10,111; nonexempt wages, $6,532; benefits, $6,112; other operating expenses, $1,100. Cash was paid in the amount of $36,878; the remainder was payable at year-end.

12. Restricted expenses amounted to: salaries—faculty, $2,256; salaries— exempt staff, $745; nonexempt wages, $213; benefits, $656; other operations, $1,100. Cash was paid in the amount of $4,612; the remainder was payable at year-end.

13. Depreciation was recorded in the amount of $1,410, all charged as unrestricted expense.

14. During the year, expenditures were made for property, plant, and equipment in the amount of $3,265, of which $1,050 was from resources restricted for capital outlay and the remainder was from unrestricted cash.

15. Interest on bonds payable, all related to capital outlay purchases, amounted to $348; all but $22 was paid in cash. Bonds were paid in the amount of $800; next year, $300 will be payable. No new revenue bonds were issued during the year. Unrestricted cash was used for all these transactions.

16. An additional $100 was deposited with the bond trustee, in accord with legal requirements.

17. The accrued liability for compensated absences increased by $100 during the year.

18. All short-term investments existing at the beginning of the year were sold for $2,450. New short-term investments were purchased for $2,650. Unrealized gains were recorded at year-end as follows: short-term investments (unrestricted), $40; long-term investments (restricted) $120; endowment investments, $61.

19. Closing entries were prepared, separately, for each net asset class.

Required:

a. Prepare journal entries for each of the above transactions.

b. (Optional) Prepare a ledger. Enter beginning balances from the trial balance and all transactions.

c. Prepare, in good form, a Statement of Net Assets for Eastern State College as of June 30, 2012.

d. Prepare, in good form, a Statement of Revenues, Expenses, and Changes in Net Assets for Eastern State College for the year ended June 30, 2012.