College Accounting (Book Only): A Career Approach
13th Edition
ISBN: 9781337280570
Author: Scott, Cathy J.
Publisher: South-Western College Pub
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Chapter 11, Problem 8DQ
To determine
Prepare adjusting entry for rent earned.
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Big Blue University has a fiscal year that ends on June 30. The 2019 summer session of the university runs from June 10 through July
29. Total tuition paid by students for the summer session amounted to $123,000.
Required:
a. How much revenue should be reflected in the fiscal year ended June 30, 2019?
Amount of revenue
b. Would your answer to part a be any different if the university had a tuition refund policy that no tuition would be refunded after the
end of the third week of summer session classes?
O Yes
O No
Accounting for Auxiliary Services Revenue
For its fall semester, Lee University, a private, nonprofit university had the following
transactions:
1. Lee University receives $1,600,000 prior to the start of the semester for housing and
dining services to be provided over the course of the semester. Assume $1,200,000
is for housing and $400,000 is for dining.
2. Based on contracts it has for its housing and dining services, Lee University recognizes
revenue in four equal installments.
Record the journal entries for the initial receipt of the $1,600,000 and for the
recognition of revenue in four installments.
Campus Flights takes out a bank loan in the amount of $200,500 on March 1, 2019. The terms of the loan include a repayment of principal in ten equal installments, paid annually from March 1. The annual interest rate on the loan is 8%, recognized on December 31, the fiscal year-end date.
IMPORTANT: Please count your months carefully as the note's "year" crosses between two fiscal years.
Compute the interest recognized for the first payment date as of December 31, 2019.
Compute the interest recognized for the year 2020 as of the first payment date.
Compute the principal due on the first payment date, March 1, 2020.
Compute the interest recognized for the second payment date as of December 31, 2020.
Compute the total interest for the year 2020.
Chapter 11 Solutions
College Accounting (Book Only): A Career Approach
Ch. 11 - Which of the following is the adjusting entry for...Ch. 11 - The adjusting entry for unearned revenue pertains...Ch. 11 - An account that has unearned in its name is...Ch. 11 - This type of inventory system does not require an...Ch. 11 - The Supplies account has a 1,400 balance. A...Ch. 11 - Prob. 6QYCh. 11 - Prob. 7QYCh. 11 - What is a physical inventory? What does the word...Ch. 11 - Prob. 2DQCh. 11 - Using the perpetual inventory system, what account...
Ch. 11 - Prob. 4DQCh. 11 - Prob. 5DQCh. 11 - Why is it necessary to adjust the Merchandise...Ch. 11 - A merchandising company shows 8,842 in the...Ch. 11 - Prob. 8DQCh. 11 - For the university football programs Unearned...Ch. 11 - On October 31, the Vermillion Igloos Hockey Club...Ch. 11 - Basga Company uses the periodic inventory system....Ch. 11 - Indicate the work sheet columns (Income Statement...Ch. 11 - Journalize the required adjusting entries for the...Ch. 11 - On December 31, the end of the year, the...Ch. 11 - On December 31, Marchant Company took a physical...Ch. 11 - The trial balance of Hadden Company as of December...Ch. 11 - The balances of the ledger accounts of Beldren...Ch. 11 - Prob. 3PACh. 11 - Here are the accounts in the ledger of Mishas...Ch. 11 - A portion of Anderson Publishings work sheet for...Ch. 11 - The trial balance of Jillson Company as of...Ch. 11 - The balances of the ledger accounts of Pelango...Ch. 11 - Prob. 3PBCh. 11 - The accounts and their balances in the ledger of...Ch. 11 - A portion of Johnsons Farm Supply work sheet for...Ch. 11 - BURTS BEES, Durham, North Carolina Burts Bees...Ch. 11 - Prob. 2ACh. 11 - Prob. 3ACh. 11 - Prob. 4ACh. 11 - Prob. 5ACh. 11 - Adjusting Entries Two months (July and August)...
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