FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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2
Southeastern College began the year with endowment investments of $1,450,000 and $860,000 of restricted cash designated by a donor for capital additions.
- During the year, an additional $524,000 ddonation was received for capital additions. These funds, together with those contributed in the prior year, were used to purchase 150 acres of land adjacent to the university.
- An alum contributed $360,000 to the permanent endowment and pledged to provide an additional $580,000 early next year. The cash was immediately invested.
- By terms of the endowment agreement, interest and dividends received on the investments are restricted for scholarships. Gains or losses from changes in the fair value of the investments, however, are not distributed but remain in the endowment. During the year, $66,000 of interest and dividends were received on endowment investments.
- At year-end, the fair value of the investments had increased by $9,300.
Required:
Prepare
-
Southeastern College is a public university.
-
Southeastern College is a private university.
Transcribed Image Text:Transaction
1a
General Journal
Debit
Credit
Restricted Cash
524,000
Contribution Revenue-with Donor Restrictions (capital additions)
524,000
1b
Land, Buildings and Equipment
Restricted Cash
1,450,000
1,450,000 €
1c
Reclassification from Net Assets with Donor Restrictions-Satisfaction of Capital Asset(
1,450,000 (
Reclassification to Net Assets without Donor Restrictions-Satisfaction of Capital As
1,450,000
2a
Restricted Cash
360,000
Pledges Receivable
500,000
Contribution Revenue-with Donor Restrictions (Permanent endowment)
860,000
2b
Endowment Investments
Restricted Cash
03
Restricted Cash (Scholarships)
Investment Income-with Donor Restrictions (Permanent endowment)
04
Endowment Investments
Investment Income-with Donor Restrictions (Permanent endowment)
360,000
360,000
66,000
66,000
9,300
9,300
Transcribed Image Text:entry is required for a transaction or event, select "No Journal Entry Required" in the first account field.
ansaction
General Journal
1a
Restricted Cash (Capital Additions)
Nonoperating Capital Grants and Gifts
Debit
524,000
524,000
Credit
1b
Capital Assets
Restricted Cash (Capital Additions)
1,450,000 x
1,450,000
2a
Restricted Cash (Endowment)
360,000
Nonoperating-Additions to Permanent Endowment
360,000
2b
Endowment Investments
Restricted Cash (Scholarships)
360,000
360,000
03
Restricted Cash (Scholarships)
Nonoperating Investment Income
66,000
66,000
04
Endowment Investments
Nonoperating-Additions to Permanent Endowment
9,300
9,300
Public University
Private University >
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