Elizabeth College, a small private college, had the following transactions in fiscal year 2023.

1. Gross tuition and fees revenue totaled $5,720,000. Tuition waivers and scholarships of $406,000 were granted. Of the tuition waivers granted, $288,400 was for teaching assistantships, which is an instruction expense.
2. Students received tuition refunds of $107,670.
3. During the year, the college received $1,903,000 cash in unrestricted private gifts, $578,200 cash restricted for grants, and $1,300,000 in securities for an endowment.
4. A pledge campaign generated $1,690,000 in pledges. Of the amount pledged, $603,200 was for the capital construction campaign, $480,000 was for endowments, and the remainder of the pledges had no purpose restrictions. The pledges will all be collected in 2024.
5. Auxiliary enterprises provided goods and services that generated $106,370 in cash.
6. Collections of tuition receivable totaled $5,140,000.
7. Unrestricted cash of $1,300,000 was invested.
8. The college purchased computer equipment at a cost of $16,580. It was determined that the computer equipment cost met the colleges capitalization threshold.
9. During the year, the following expenses were paid:

Instruction	$	3,581,040
Academic support		2,017,000
Student services		93,980
Institutional support		507,130
Auxiliary enterprises		98,410

1. Instruction provided $510,000 in services related to the restricted grant recorded in transaction 3.
2. At year-end, the allowance for uncollectible tuition and fees was increased by $8,400. The fair value of investments had increased $12,740; of this amount, $4,840 was associated with endowment investments and allocated to net assets with donor restrictions, with the remainder allocated to net assets without donor restrictions. Depreciation on plant and equipment was allocated $37,750 to instruction, $44,000 to auxiliary enterprises, and $14,250 to academic support.
3. All nominal accounts were closed.

Required

1. a-1. Prepare journal entries to record the foregoing transactions for the fiscal year ended June 30, 2023.
2. a-2. Prepare closing entries for the fiscal year ended June 30, 2023.
3. b. Prepare a statement of activities for the year ended June 30, 2023. Assume beginning net asset amounts of $7,638,000 without donor restrictions, and $5,500,000 with donor restrictions.

A

Record the tuition and fees receivable, the waivers and scholarships.

B

Record the tuition and fees refunds.

C

Record the receipt of cash and investment contributions.

D

Record the pledges generated, classifying into with donor restrictions.

E

Record the revenue generated by auxiliary enterprises.

F

Record the collection of tuition and fees.

G

Record the investment made from unrestricted cash.

H

Record the purchase of equipment.

I

Record the payment of expenses for the year.

J

Record the payment made towards instruction expenses.

K

Record the transfer of instruction expenses with donor restrictions net assets account.

L

Record the increase in allowance for uncollectible tuition and fees.

M

Record the increase in fair value of investments.

N

Record the depreciation expenses for the year.

Journal entry worksheet

• Record the closure of all nominal accounts.

Note: Enter debits before credits.

	Transaction General Journal Debit Credit 12(a)

ELIZABETH COLLEGE Statement of Activities Year Ended June 30, 2023 Without Donor Restrictions With Donor Restrictions Total Revenues and gains: $0 0 0 0 0 0 Total Revenues and Gains 0 0 0 Expenses and Losses: Educational and General Expenses: 0 0 0 0 0 Total Educational and General Expenses 0 0 0 0 Total Expenses and Losses 0 0 0 Total Change in Net Assets 0 0 0 Net Assets, Beginning of the Year 0 Net Assets, End of the Year $0 $0 $0