(Solved by Humans)-Problems and Exercises Complete the following problems and exercises, showing all work and submit...

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Problems and Exercises Complete the following problems and exercises, showing all work and submit in the classroom.1. Classification of Revenues/Support and Expenses. For each of the independent transactions listed below, indicate which of the listed revenue or contribution classifications apply by choosing one or more of the letters from the listed items. Choose all that apply.TransactionA museum gift shop sold prints of famous paintings.At the end of the year a donor agreed to contribute $400,000 to a local artists’ fund if the museum raised a matching amount in the first quarter of the upcoming year.A registered nurse volunteered 10 hours a week to a local agency for disabled persons.A donor contributed $1 million to a not-for-prof it hospital for a new clinic.An NFP art association hosted its annual art exhibition for the association's major contributors.A donor contributed securities valued at $10 million to be permanently invested. Earnings thereon are stipulated by the donor to be used for eye research.A local computer store donated computers for children's use at an NFP hands-on children's museum.A local PTA received cash contributions of $2,000 to be used for its operating activities.Revenue and Contribution ClassificationsRevenueContributions – UnrestricedContributions – Temporarily RestrictedContribution - Permanently RestrictedNone of the above.2. Recording and Reporting Transactions. INVOLVE was incorporated as a not-for-prof it voluntary health and welfare organization on January 1, 2017. During the fiscal year ended December 31, 2017, the following transactions occurred.A business donated rent-free office space to the organization that would normally rent for $35,000 a year.A fund drive raised $185,000 in cash and $100,000 in pledges that will be paid within one year. A state government grant of $150,000 was received for program operating costs related to public health eduction.Salaries and fringe benefits paid during the year amounted to $208,560. At year-end, an additional $16,000 of salaries and fringe benefits were accrued.A donor pledged $100,000 for construction of a new building payable over the following five fiscal years, commencing in 2019. The discounted value of the pledge is expected to be $94,260. Office equipment was purchased for $12,000. The useful life of the equipment is estimated to be five years. Office furniture with a fair value of $9,600 was donated by a local office supply company. The furniture has an estimated useful life of 10 years. Furniture and equipment are considered unrestricted net assets by INVOLVE.Telephone expense for the year was $5,200, printing and postage expense was $12,000 for the year, utilities for the year were $8,300, and supplies expense was $4,300 for the year. At year-end, an immaterial amount of supplies remained on hand and the balance in accounts payable was $3,600.Volunteers contributed $15,000 of time to help with answering the phones, mailing materials, and various other clerical activities.It is estimated that 90 percent all of the pledges made for the 2018 year will be collected. Depreciation expense is recorded for the full year on the assets recorded in item 5.Salaries and wages were allocated to program services and support services in the following percentages: public health education, 35 percent; community service, 30 percent; management and general, 20 percent; and fund-raising, 15 percent. All other expenses were allocated in the following percentages: public health education, 35 percent; community service, 20 percent; management and general, 25 percent; and fund- raising, 20 percent.Net assets were released to reflect satisfaction of state grant requirements that the grant resources be used for program purposes.All nominal accounts were closed to the appropriate net asset accounts.Using this informationMake all necessary journal entries to record these transactions. Expense transactions should be initially recorded by object classification; in entry 10 expenses will be allocated to functions.Prepare a statement of activities for the year ended December 31, 2017.Prepare a statement of financial position for the year ended December 31, 2017.Prepare a statement of cash flows for the year ended December 31, 2017.Prepare a statement of functional expenses for the year ended December 31, 2017.3. Various Unrelated Transactions. Following are several unrelated transactions involving a university.In fiscal year 2017, the university was notified by the federal government that in 2018 it would receive a $500,000 grant for wetlands research.The university received a $500,000 endowment.For the fiscal year, the university recorded $2,500,000 in tuition and fees revenue. Cash refunds of $325,000 were given.The university provided $12,600 in tuition waivers for students with outstanding academic performance.During the year, the university constructed a new street, to allow for the expansion of its student housing efforts. The cost of the street was $1,980,000.The biology department spent $25,000 on wetland research.At year-end, $1,670 of estimated uncollectible tuition and fees was recorded.Using this informationPrepare journal entries to record the foregoing transactions, assuming the university is a private institution. Prepare journal entries to record the foregoing transactions, assuming the university is a public institution. 4. Financial Statements - Public College. The following balances come from the trial balance of Wilson State College as of the end of the 2017 fiscal year.WILSON STATE COLLEGE Pre-closing Trial Balance June 30, 2017 (000s omitted)DebitsCreditsCash and Cash Equivalents$3,278Investments$29,387Accounts Receivable$1,957Allowance for Uncollectible Receivables$137Due from State$79,626Inventories$869Cash and Cash Equivalents--Restricted$6,716Investments--Restricted$71,883Depreciable Capital Assets$184,620Accumulated Depreciation$28,850Nondepreciable Assets$89,481Accounts Payable$2,306Accrued Liabilities$2,039Unearned Revenue$13,789Compensated Absences -Current Portion$1,538Bonds Payable$92,116Compensated Absences$37,662Net Position--Net Investment in Capital Assets$158,715Net Position--Restricted for Debt Service--Expendable$1,157Net Position--Restricted for Capital Projects--Expendable$49,272Net Position – Restricted for Endowment--Nonexpendable$39,959Net Position--Unrestricted$36,559Tuition and Fees$30,095Tuition and Fees Discount and Allowances$7,565Grants and Contracts Revenue$18,196Auxiliary Enterprise Sales$14,595Investment Income$1,745State Appropriations$44,894Capital Appropriations$12,785Institutional Support Expenses$26,268Academic Support Expenses$58,940Scholarships and Fellowships Expense$7,664Depreciation Expense$5,580Interest Expense$378Auxiliary Enterprise Expenses$12,197Totals$586,409$586,406Information on Cash and Cash Equivalents ActivityBeginning Cash Balance$8,067Received Tuition and Fees (net)$23,609Received Grants and Contracts$12,940Received from Auxiliary Enterprises$13,765Payments to Employees$58,220Payments to Vendors$21,711Payments to Students for Scholarships and Fellowships$7,664Received State Appropriations39,894Received Capital Appropriations20,540Purchase of Capital Assets20,634Interest Paid on Debt2,095Interest Income1,503Using this informationPrepare a statement of revenues, expenses, and changes in net position for the year ended June 30, 2017, in good form. See Illustrations 15­2 and 7­6; however, display expenses using functional classifications as shown in Illustration 15­6.Prepare a statement of net position as of June 30, 2017, in good form. For the period, net position restricted for capital projects increased by $3,000, and net position restricted for debt service increased by $150; all bonded debt relates to capital assets. See Illustration 15­1.Prepare a statement of cash flows for the year ended June 30, 2017. Information on changes in assets and liabilities is as follows: Accounts Receivable (net) increased by $2,551; Due from State decreased by $14,842; Inventories increased by $23; Accounts Payable and Accrued Liabilities increased by $1,962; and Unearned Revenue decreased by $1,763. See Illustration 15­3