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Understanding the issues questions 18-1,18-3,19-5, & 19-6, Exercise 18-4, Exercise 18-8, & Problem 19-9.

ASSIGNMENT INSTRUCTIONS
Your week five assignment includes four questions which you will find in the following tabs.
Before you begin working on the assignment, I suggest that you create a folder for all of your
Advance Accounting 2 assignments in the Documents folder. You might want to name this folder “AC 426 folder.”
After you open this file, please save the entire file to your AC 426 folder.
IF YOU OPEN THE FILE AND BEGIN WORKING WITHOUT SAVING YOU WILL
LOSE YOUR WORK! Excel files are embedded web pages and your work will be lost if
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Be sure to submit the entire file in the assignment upload area! Please do not try to save
and send the tabs separately!
Understanding the Issues Questions
Please answer the following questions
18-1. How is it helpful for a private not- for- profit organization to account for current
restricted or unrestricted?
18-3. Differentiate between public support and revenues as sources of assets for priv
What benefit is there in accounting for these differently?
19-5. Explain a hospital’s rigid adherence to gross revenue determination
19-6. What is the special concern over accounting for medical malpractice claims?
How does accounting for such claims compare to accounting for contingencies
in a for-profit business environment?
es of assets for private not-for- profit organizations.
EXERCISE 18-4
12345-
EXERCISE 18-8
1
To record legacy received
Cash
Legacies and Bequests—Permanently Restricted
Endowment Investments
Cash
2
Cash
Investment
Gain on Sale of Endowments—Unrestricted
Investment Revenue—Temporarily Restricted
3
Cash
Investment Revenue—Temporarily Restricted
4
Increase in Carrying Value
Unrealized Gain in Investments—Unrestricted
Problem 19-9
You will need the solution for problerm 19-8 to complete problem 19-9. Here it is:
problem 19-8
-1
Closing entries:
Each asset
Revenues—Tuition and Fees
class is Revenues—Government
closed
Appropriations
separately.
Revenues—Unrestricted Contributions
Revenues—Unrestricted Other Investment Income
Reclassifications In—Unrestricted—Satisfaction of
Program Restrictions
Reclassifications In—Unrestricted—Satisfaction of
Plant Acquisition Restrictions
Reclassifications In—Unrestricted—Expiration of
Time Restrictions
Unrestricted Net Assets
Expenses—Research
Expenses—Instruction
Expenses—Academic Support
Expenses—Student Services
Expenses—Institutional Support
Expenses—Operation and Maintenance of Plant
Expenses—Student Aid
Revenues—Sales and Services of Auxiliary
Enterprises
300,000
Unrestricted Net Assets
Expenses—Auxiliary Enterprises
Revenues—Temporarily Restricted Contributions
Revenues—Temporarily Restricted Endowment
Income
Revenues—Temporarily Restricted Net Realized
Gains on Endowment
Temporarily Restricted Net Assets
Reclassifications Out—Temporarily Restricted—
Reclassifications Out—Temporarily Restricted—
Reclassifications Out—Temporarily Restricted—
Restrictions
Revenues—Permanently Restricted
Contributions
Excel Private College
Statement of Activities
For Year Ended December 31, 2018
Temporarily
Unrestricted
Changes
in
net
assets:
Revenues and gains:
Tuition and fees
Contributions
Government appropriations, grants, and
contracts
Investment income on endowment
Net realized gains on endowment investments
Sales and services of auxiliary enterprises
Net
assets
released
from
restricti
ons:
Satisfaction of program restrictions
Satisfaction
of
equipment
acquisition restrictions
Satisfaction of time restrictions
Total net assets released from restrictions
Expense
s:
Research
Instruction
Academic support
Student services
Institutional support
Operation and maintenance of plant
Student aid
Auxiliary enterprises
Total expenses
Net
assets,
January
1, 2018
Net
assets,
Decemb
er 31,
2018
$
Net assets:
Unrestricted
Temporarily restricted
Permanently restricted
Total liabilities and net assets
Problem 19.9
Assets:
Cash
Accounts receivable
Contributions receivable
Inventory of supplies
Student loans receivable
Land, buildings, and equipment (net)
Endowment investments
Total assets
Liabilities:
Accounts payable
Amounts held on behalf of others
Long-term debt
U.S. government grants refundable
Total liabilities
Net assets:
Unrestricted
Temporarily restricted
Permanently restricted
Total net assets
Total liab. And net assets
problem 19-9. Here it is:
2,500,000
700,000
365,000
150,000
75,000
ion Restrictions
250,000
50,000
Net Assets
cademic Support
tudent Services
nstitutional Support
Operation and Maintenance of Plant
275,000
uxiliary Enterprises
100,000
235,000
ons Out—Temporarily Restricted—
Satisfaction of Program Restrictions
ons Out—Temporarily Restricted—
Expiration of Time Restrictions
ons Out—Temporarily Restricted—
Satisfaction of Equipment Acquisition
250,000
15,000
25,000
500,000
Permanently Restricted Net Assets
Permanently
Restricted
$
700,000
Other investment income
Total revenues and gains
$
75,000
250,000
50,000
$
Total revenues and gains and other support
$
840,000
1,130,000
200,000
200,000
325,000
300,000
350,000
575,000
$
Increase (decrease) in net assets
675,000
1,145,000
$
$
Total net assets
$
6,015,000
Private College
Statement of Financial Position
December 31, 20X8
745,000
840,000
1,130,000
200,000
200,000
325,000
300,000
350,000
575,000
75,000
50,000
500,000
Restricted
2,500,000
365,000
$
100,000
15,000
25,000
150,000
300,000
$
4,015,000
$
-75,000
375,000
$
-250,000
-50,000
($375,000)
4,390,000
$
($235,000)
osition
3,920,000
$
$
470,000
975,000
0
($235,000)
2,500,000
740,000
$
$
4,885,000
3,000,000

Total
$
$
500,000
#########
140,000
$
$
500,000
$
0
$
500,000
0
0
0
$
$
840,000
1,130,000
200,000
200,000
325,000
300,000
350,000
575,000
$
$
0
500,000
4,150,000
$
4,885,000
$
$
2,500,000
965,000
15,000
25,000
150,000
300,000
$
4,655,000
4,655,000
3,920,000
735,000

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