please help 458818

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 Net

Assets-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.

Complete Exercise 11-8, preparing the statements described in parts a and b. Explain the process by which you completed the final statements. Offer your opinion and analysis of the data in answer to the question: “What is the financial health of Lee College?”