Exercise 11-7
Eastern University had the following transactions at the beginning of its academic year:
1- Student tuition and fees were billed in the amount of $7,010,000. Of that amount, $4,520,000 was collected in cash.
2- Pell Grants in the amount of $2,002,000 were received by the university.
3- The Pell Grants were applied to student accounts.
Student scholarships, for which no services were required, amounted to $460,000. These were applied to student tuition bills at the beginning of each semester.
Required:
Prepare journal entries to record the above transactions assuming:
a. Eastern University is a public university.
b. Eastern University is a private university.
Exercise 11-7
Eastern University had the following transactions at the beginning of its academic year:
1- Student tuition and fees were billed in the amount of $7,010,000. Of that amount, $4,520,000 was collected in cash.
2- Pell Grants in the amount of $2,002,000 were received by the university.
3- The Pell Grants were applied to student accounts.
Student scholarships, for which no services were required, amounted to $460,000. These were applied to student tuition bills at the beginning of each semester.
Required:
Prepare journal entries to record the above transactions assuming:
a. Eastern University is a public university.
b. Eastern University is a private university.
Related questions
[The following information applies to the questions displayedbelow.]
The Art League is a not-for-profit organization dedicated topromoting the arts within the community. There are two programsconducted by the Art League: (1) exhibition and sales of membersâart (referred to as Exhibition) and (2) Community Art Education.Activities of the Art League are conducted by a part-timeadministrator, a part-time secretary-bookkeeper, and severalpart-time volunteers. The volunteers greet visitors, monitor thesecurity of the exhibit hall, and handle the sales of art to thepublic. Art on exhibit is considered the property of the memberartists, not the Art League.
The post-closing trial balance for the Art League as of June 30,2016, is shown here.
ART LEAGUE
Post-closing Trial Balance
June 30, 2016
Debits
Cash $ 2,315=====debit
Short-term Investments 14,111=====debit
Grants Receivable 6,600=======debit
Prepaid Expense 1,360======debit
Equipment 10,345======debit
Cr.=====Allowance for DepreciationâEquipment $ 2,626
Long-term InvestmentsâPermanently Restricted5,967-=====Debit
Cr.=====Accounts Payable and Accrued Expenses 2,849
Cr =====Deferred Revenue 4,800
Cr.====Unrestricted Net Assets 9,211
Cr.====Temporarily Restricted Net Assets 15,245
Cr.=====Permanently Restricted Net Assets 5,967
Totals $ 40,698 $ 40,698
Following is information summarizing the transactions of the ArtLeague for the year ended June 30, 2017.
1. During the year, unrestricted cash was received from thefollowing sources: grants, $13,600, of which $5,600 had beenreported as receivable on June 30, 2016; annual contributions fromfund drives and other unrestricted gifts, $14,061; membership dues,$17,285; tuition and fees for educational workshops, $7,174; andsales of membersâ art, $12,210, of which 20 percent representscommissions earned by the Art League.
2. Interest earnings were as follows: interest on unrestrictedinvestments totaled $706; interest on temporarily restrictedinvestments totaled $945; interest on permanently restrictedinvestments totaled $364 (these investment earnings are temporarilyrestricted for program use).
3. Grants receivable as of year-end totaled $5,420, of which$3,320 was earned in the current year (thus unrestricted) and$2,100 was reported as deferred revenue.
4. The Art League receives free rent from the city at anestimated value of $20,000 a year.
6. During the year, $3,900 of short-term investments were sold,with the proceeds used to purchase two computers and printer at acost of $3,035. The resources used were temporarily restricted forthe purchase of equipment.
7. In accordance with the terms of the Art League endowment,income earned by the endowment for the provision of free artinstruction for handicapped children was provided at a cost of$1,025. This amount was allocated to community art education.
8. Depreciation on equipment in the amount of $1,842 wasrecorded.
9. Expenses for the year were allocated 30 percent to ExhibitionProgram, 30 percent to Community Art Education, 25 percent toManagement and General Expenses, and 15 percent toFund-Raising.
10. Proceeds of art sales, net of commissions charged by the ArtLeague, totaled $9,768. This amount was paid to member artistsduring the year.
11. All nominal accounts were closed at year-end.
Prepare journal entries to record these transactions. Expensetransactions should be initially recorded by object classification,unless otherwise instructed; in entry 9, expenses will be allocatedto functions. (If no entry is required for atransaction/event, select "No Journal Entry Required" in the firstaccount field. Do not round intermediate calculations. Round youranswers to the nearest whole dollar amount.) |
