Presented below are the closing entries for Lee College, a private not-for-profit, for the year ended December 31, 2012

11-8 Presented below are the closing entries for Lee College, a private not-for-profit, for the year ended December 31, 2012.

Debits Credits
Revenues-Unrestricted-Tuition & Fees $11,200,000
Revenue-Unrestricted-Unrestricted Income on Endowment investment 40,000
Revenue-Unrestricted-Sales & Service of Auxiliary Enterprises 5,000,000
Revenues-Unrestricted-Contributions 100,000
Reclassifications to Unrestricted Net Assets-Satisfaction of Program Restrictions 640,000
Reclassifications to Unrestricted Net Assets-Satisfaction of Plant Acquisition Restrictions 1,160,000
Tuition Discount-Unrestricted-Student Aid 110,000
Instruction Expense 7,000,000
Research Expense 4,500,000
Public Service Expense 1,200,000
Institutional Support Expense 700,000
Student Service Expense 150,000
Auxiliary Enterprise Expense 3,500,000
Net Assets-Unrestricted-Undesignated 980,000
Revenues-Temporarily Restricted-Contributions 1,500,000
Revenues-Temporarily Restricted-Grants 950,000
Reclassification from Temporarily Restricted
Net Assets-Satisfaction of Program Restrictions 640,000
Reclassification from Temporarily Restricted NetAssets-Satisfaction of Plant Acquisition Restrictions 1,160,000
Net Assets-Temporarily Restricted 650,000
Revenues-Permanently Restricted-Contributions 2,540,000
Gains on Long Term Investments 750,000
Net Assets-Permanently Restricted 3,290,000

Assume the January 1, 2012, net asset balances are as follows: $1,000,000 unrestricted net assets, $300,000 temporarily restricted net assets; and $1,700,000 permanently restricted net assets.

A. Prepare a Statement of Activities using the format presented in Illustration 10-1.
B. Prepare a Statement of Unrestricted Revenues, Expenses, and Other Changes in Unrestricted Net Assets together with a Statement of Changes in Net assets.

Click here for the solution: Presented below are the closing entries for Lee College, a private not-for-profit, for the year ended December 31, 2012

Jefferson County Airport handles several daily commuter flights and many private flights

Jefferson County Airport handles several daily commuter flights and many private flights. The county budget officer has compiled the following data regarding airport costs and activity over the past year.

Required:

1. Draw a scatter diagram of the airport costs shown above.

2. Build a spreadsheet: Construct an Excel spreadsheet and use the Excel commands to perform a least-squares regression. Estimate the variable- and fixed-cost components in the airport’s cost behavior pattern.

3. Write the least-squares regression equation for the airport’s costs.

4. Predict the airport’s costs during a month when 1,500 flights originate at the airport.

5. Using the Excel spreadsheet prepared for requirement (2), compute the coefficient of determination (R2) for the regression equation. Briefly interpretR2.

Click here for the solution: Jefferson County Airport handles several daily commuter flights and many private flights