Ethan Allen University Is a Private University Following FASB Standards

question 25

Essay

Ethan Allen University is a private university following FASB standards for reporting. The following transactions took place during the year ended June 30, 2009.
(1) EAU had received $520,000 in tuition in June 2009 for the summer session that runs from June 16 to August 14, 2008 and had deferred $ 390,000 (75%) at June 30, 2008.
(2) EAU received in cash tuition of $2,890,000; unrestricted contributions of $320,000; contributions permanently restricted by donor agreement for the endowment of $ 700,000, unrestricted interest income on endowments of $250,000; and auxiliary enterprise revenue of $2,500,000.
(3) Contributions for student scholarships were received in the amount of $340,000. $290,000 was awarded to students during the year. Students receiving these scholarships are required to work 10 hours a week (institutional support).
(4) Expenses amounted to $1,400,000 for instruction, $800,000 for research, $600,000 for public service, $2,000,000 for auxiliary enterprises, $300,000 for student services and $890,000 for institutional support. Included in these amounts is $460,000 of depreciation. All other expenses ($ 5,530,000) were paid in cash. Plant assets are classified as unrestricted.
(5) EAU received $580,000 in tuition in mid June 2009 for the summer session ending in mid August 2009.
(6) At year-end, endowment investments were determined to have a fair value of $54,000 in excess of their recorded amounts. No restrictions apply to this income.
Required:
(a) Prepare journal entries to record these events including closing entries.
(b) Prepare a Statement of Unrestricted Revenues, Expenses and Other Changes in Unrestricted Net Assets.
(c) Prepare a Statement of Activities for the year ending June 30, 2009, assuming the June 30, 200810 balances in net assets are: $2,050,000 unrestricted, $830,000 temporarily restricted and $4,000,000 permanently restricted.

Appreciate the influence of genetics and environmental factors on phenotypic diversity and the concept of genetic determinism.

Understand the key factors that necessitate the dissolution of a partnership.

Comprehend the process and authority involved in winding up a partnership’s business.

Recognize the circumstances that lead to wrongful and nonwrongful dissociation of a partner.

---

Definitions:

Papillae

Structures on the tongue that contain groupings of taste buds.

Gustatory Receptors

Specialized sensory cells located on the tongue that detect taste stimuli and convey taste signals to the brain.

Olfactory Epithelium

A thin layer of tissue, deep within the nasal cavity, containing the olfactory receptors; these sensory receptors produce information that is processed in the brain as smell.

Gustation

The sense of taste, one of the five traditional senses, which detects the chemical composition of substances through taste buds.