Ethan Allen University is a private university following FASB standards for reporting. The following transactions took place during the year ended June 30, 2017.
1) EAU had received $550,000 in tuition in June 2017 for the summer session that runs from June 16 to August 14, 2016 and had deferred $ 357,500 65%) at June 30, 2016.
2) EAU received in cash tuition of $3,320,000; unrestricted contributions of $320,000; contributions permanently restricted by donor agreement for the endowment of $ 910,000, unrestricted interest income on endowments of $250,000; and auxiliary enterprise revenue of $2,200,000.
3) Contributions for student scholarships were received in the amount of $425,000. $380,000 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 $400,000 in tuition in mid June 2017 for the summer session ending in mid-August 2017. 65% relates to the next fiscal year
6) At year-end, endowment investments were determined to have a fair value of $14,000 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 Activities for the year ending June 30, 2017, assuming the June 30, 2016 balances in net assets are: $1,020,000 unrestricted, $30,000 temporarily restricted, and $8,000,000 permanently restricted.

Question

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The Answer of Ethan Allen University is a private university following FASB standards for reporting. The following transactions took place during the year ended June 30, 2017.
1) EAU had received $550,000 in tuition in June 2017 for the summer session that runs from June 16 to August 14, 2016 and had deferred $ 357,500 65%) at June 30, 2016.
2) EAU received in cash tuition of $3,320,000; unrestricted contributions of $320,000; contributions permanently restricted by donor agreement for the endowment of $ 910,000, unrestricted interest income on endowments of $250,000; and auxiliary enterprise revenue of $2,200,000.
3) Contributions for student scholarships were received in the amount of $425,000. $380,000 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 $400,000 in tuition in mid June 2017 for the summer session ending in mid-August 2017. 65% relates to the next fiscal year
6) At year-end, endowment investments were determined to have a fair value of $14,000 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 Activities for the year ending June 30, 2017, assuming the June 30, 2016 balances in net assets are: $1,020,000 unrestricted, $30,000 temporarily restricted, and $8,000,000 permanently restricted.

Ethan Allen University Is a Private University Following FASB Standards