Concept explainers
a.
Prepare journal entries to record the transactions for the year ended June 30, 2020.
a.
Explanation of Solution
Prepare journal entries to record the transactions for the year ended June 30, 2020:
Date | Particulars | Post ref. | Debit | Credit |
1 | Tuition receivable | $5,254,000 | ||
Tuition and fees discount and allowances | $69,600 | |||
Instruction expense | $276,400 | |||
Tuition and fees – without donor restrictions | $5,600,000 | |||
( To record the tuition revenue) | ||||
2 | Tuition and fees – without donor restrictions | $101,670 | ||
Tuition receivable | $101,670 | |||
( To record the refund of tuition fees) | ||||
3 | Cash | $2,466,200 | ||
Investments | $1,000,000 | |||
Contributions without donor restrictions | $1,891,000 | |||
Contributions with donor Restrictions - grants | $575,200 | |||
Contributions with donor Restrictions - endowment | $1,000,000 | |||
( To record the receipt of contributions) | ||||
4 | Pledges receivable | $1,090,000 | ||
Contributions with donor Restrictions – capital campaign | $573,200 | |||
Contributions with donor Restrictions – time | $216,800 | |||
Contributions with donor Restrictions – endowment | $300,000 | |||
(To record the pledge receivable) | ||||
5 | Cash | $94,370 | ||
Auxiliary enterprises without donor restrictions | $94,370 | |||
(To record the receipt from goods and services) | ||||
6 | Cash | $5,080,000 | ||
Tuition receivable | $5,080,000 | |||
(To record the collections from tuition receivable) | ||||
7 | Investments | $1,000,000 | ||
Cash | $1,000,000 | |||
(To record the investment of unrestricted cash) | ||||
8 | Equipment | $10,580 | ||
Cash | $10,580 | |||
(To record the purchase of computer equipment) | ||||
9 | Instruction Expense | $3,566,040 | ||
Academic Support Expense | $1,987,000 | |||
Student services expense | $87,980 | |||
Institutional support expense | $501,130 | |||
Auxiliary enterprises expense | $92,410 | |||
Cash | $6,234,560 | |||
(To record the cash payment made for expenses) | ||||
10 | Instruction Expense | $450,000 | ||
Cash | $450,000 | |||
(To record the cash payment made for instruction expense) | ||||
Net Assets Released From Restrictions - Without Donor Restrictions | $450,000 | |||
Net Assets Released From Restrictions - Without Donor Restrictions | $450,000 | |||
(To record the release of temporarily restricted net assets) | ||||
11 | Tuition and fees – without donor restrictions | $7,200 | ||
Allowance for doubtful accounts | $7,200 | |||
(To record the allowance for doubtful debts for the year) | ||||
Investments | $11,540 | |||
Unrealized gain on Investments - without donor Restrictions | $8,500 | |||
Unrealized gain on Investments - with donor Restrictions - endowment | $3,040 | |||
(To record the fair value of investments) | ||||
Instruction expense | $34,750 | |||
Auxiliary enterprises expense | $41,000 | |||
Academic Support Expense | $12,450 | |||
$88,200 | ||||
( To record the expenses for the year) | ||||
12 | Tuition And Fees—Without Donor Restrictions | $5,491,130 | ||
Contributions—Without Donor Restrictions | $1,891,000 | |||
Auxiliary enterprises - Without Donor Restrictions | $94,370 | |||
Unrealized Gain On Investments - Without Donor Restrictions | $8,500 | |||
Tuition and fees discount and allowances | $69,600 | |||
Instruction Expense | $4,327,190 | |||
Academic Support Expense | $1,999,450 | |||
Student Services Expense | $87,980 | |||
Institutional Support Expense | $501,130 | |||
Auxiliary enterprises expense | $133,410 | |||
Net assets without donor restrictions | $366,240 | |||
(To record the closing of nominal accounts) | ||||
Contributions - With Donor Restrictions - Grants | $575,200 | |||
Contributions - With Donor Restrictions – Capital campaign | $573,200 | |||
Contributions - With Donor Restrictions – Time | $216,800 | |||
Net assets with Donor Restrictions | $1,365,200 | |||
(To close nominal accounts ) | ||||
Contributions—With Donor Restrictions - endowment | $1,300,000 | |||
Unrealized Gain On Investments - With Donor Restrictions—Endowment | $3,040 | |||
Net Assets—With Donor Restrictions | $1,303,040 | |||
(To close nominal accounts ) | ||||
Net position with donor restrictions | $450,000 | |||
Net Assets Released From Restrictions - Without Donor Restrictions | $450,000 | |||
Net Assets—Without Donor Restrictions | $450,000 | |||
Net Assets Released From Restrictions – With Donor Restrictions | $450,000 | |||
(To reclassify the net assets) |
Table (1)
a.
Prepare a statement of activities for the year ended June 30, 2020.
a.
Explanation of Solution
Prepare a statement of activities for the year ended June 30, 2020:
College E | |||
Statement of activities | |||
For the year ended June 30, 2020 | |||
Particulars | Without Donor Restrictions | With Donor Restrictions | Total |
Revenues and gains: | |||
Student tuition and fees (net) | $5,421,530 | $5,421,530 | |
Contributions | $1,891,000 | $2,665,200 | $4,556,200 |
Auxiliary Enterprises | $94,370 | $94,370 | |
Unrealized gain on investments | $8,500 | $3,040 | $11,540 |
Net assets released from restrictions | $450,000 | ($450,000) | $0 |
Total revenues and gains (A) | $7,865,400 | $2,218,240 | $10,083,640 |
Expenses and losses: | |||
Educational and general expenses: | |||
Instruction expense | $4,327,190 | $4,327,190 | |
Academic support expense | $1,999,450 | $1,999,450 | |
Student services | $87,980 | $87,890 | |
Institutional support expense | $501,130 | $501,130 | |
Total educational and general expense | $6,915,750 | $6,915,750 | |
Auxiliary enterprises | $133,410 | $133,410 | |
Total expenses and losses (B) | $7,049,160 | $7,049,160 | |
Total change in net assets | $816,240 | $2,218,240 | $3,034,480 |
Add: Net assets, beginning of the year | $7,518,000 | $5,200,000 | $12,718,000 |
Net assets, end of the year | $8,334,240 | $7,418,240 | $15,752,480 |
Table (2)
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Chapter 15 Solutions
Accounting For Governmental & Nonprofit Entities
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