The Evangelical Private School follows FASB standards ofaccounting and reporting.
1. Cash contributions were received as follows: (a)$1,113,000 for any purpose desired by the school, (b)$305,000 for salary supplements for school faculty, (c)$421,000 to be used during the next fiscal year in any mannerdesired by the school, (d) $610,000 for the constructionof a new auditorium, and (e) $408,000 to be investedpermanently, with the income to be used as desired by the school.The schoolâs policy is to record all restricted gifts astemporarily restricted and then reclassify when the restriction islifted.
2. The school expended $400,000 of the $1,113,000 mentioned in1(a) for school furniture. Record the plant asunrestricted.
3. The school expended $284,500 for salary supplements asdirected by the donor in 1(b).
4. The $421,000 in 1(c) was retained for use next year,as directed by the donor.
5. $790,000 was expended for the construction of the newauditorium. School policy is to record all plant asunrestricted.
6. The $408,000 mentioned in 1(e) was investedpermanently, as directed by the donor, and in the year ended June30, 2017, the school received interest of $19,380, none of whichwas expended.
Required:
Record journal entries for the above transactions during the yearended June 30, 2017. (If no entry is required for atransaction/event, select "No Journal Entry Required" in the firstaccount field.)
a. Record the entry for cash contributions forunrestricted fund.
b. Record the entry for cash contributions for salary payment toschool faculty.
c. Record the entry for cash contributions for temporarilyrestricted fund.
d. Record the entry for cash contributions for construction ofnew auditorium.
e. Record the entry for cash contributions for permanentlyrestricted fund.
f. Record the entry for cash purchase of school furniture.
g. Record the entry for payment salary.
h. Record the entry for expiration of program restrictions.
i. Record $421,000 that will be reclassified at the beginning ofnext year as the expiration of time restrictions.
j. Record $790,000 that was expended for the construction of thenew auditorium.
k. Record the entry for expiration of fixed asset acquisitionrestrictions.
l. Record the entry for cash investments.
m. Record the entry for receipt of interest income.
The Evangelical Private School follows FASB standards ofaccounting and reporting.
1. Cash contributions were received as follows: (a)$1,113,000 for any purpose desired by the school, (b)$305,000 for salary supplements for school faculty, (c)$421,000 to be used during the next fiscal year in any mannerdesired by the school, (d) $610,000 for the constructionof a new auditorium, and (e) $408,000 to be investedpermanently, with the income to be used as desired by the school.The schoolâs policy is to record all restricted gifts astemporarily restricted and then reclassify when the restriction islifted.
2. The school expended $400,000 of the $1,113,000 mentioned in1(a) for school furniture. Record the plant asunrestricted.
3. The school expended $284,500 for salary supplements asdirected by the donor in 1(b).
4. The $421,000 in 1(c) was retained for use next year,as directed by the donor.
5. $790,000 was expended for the construction of the newauditorium. School policy is to record all plant asunrestricted.
6. The $408,000 mentioned in 1(e) was investedpermanently, as directed by the donor, and in the year ended June30, 2017, the school received interest of $19,380, none of whichwas expended.
Required:
Record journal entries for the above transactions during the yearended June 30, 2017. (If no entry is required for atransaction/event, select "No Journal Entry Required" in the firstaccount field.)
a. Record the entry for cash contributions forunrestricted fund.
b. Record the entry for cash contributions for salary payment toschool faculty.
c. Record the entry for cash contributions for temporarilyrestricted fund.
d. Record the entry for cash contributions for construction ofnew auditorium.
e. Record the entry for cash contributions for permanentlyrestricted fund.
f. Record the entry for cash purchase of school furniture.
g. Record the entry for payment salary.
h. Record the entry for expiration of program restrictions.
i. Record $421,000 that will be reclassified at the beginning ofnext year as the expiration of time restrictions.
j. Record $790,000 that was expended for the construction of thenew auditorium.
k. Record the entry for expiration of fixed asset acquisitionrestrictions.
l. Record the entry for cash investments.
m. Record the entry for receipt of interest income.
