Union Seminary, a Private Not-For-Profit College, Uses the Fund Basis

question 86

Essay

Union Seminary, a private not-for-profit college, uses the fund basis of accounting for internal record keeping. Presented below is the fully adjusted 12/31/2017 balance sheet for Union, prepared using funds and account groups. The following are fund descriptions:
Operating Fund - the fund used for transactions not falling within the definition of other funds. There are no restrictions on these resources.
Memorial Fund - Used to account for resources donated from outside parties for specific capital additions
Endowment Fund - Assets received from an outside donor for permanent investment, only the earnings may be expended.
Scholarship Fund - Cash set aside by the Seminary's governing board for use as scholarships and student aid.
Fixed Assets Account Group - A record of the Seminary's fixed assets and long-term debt.
Required: Prepare a Statement of Financial Position following the guidelines provided in FASB Statements 116 and 117 for private not-for-profits and assuming Union does not classify plant assets as temporarily restricted.

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