Southeastern College began the year with endowment investments of $1,430,000 and $850,000 of restricted cash designated by a donor for capital additions. 1. During the year an additional $522,000 donation 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. 2. An alum contributed $350,000 to the permanent endowment and pledged to provide an additional $570,000 early next year. The cash was immediately invested. 3. 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 $65,000 of interest and dividend were received on endowment investments. 4. At year-end, the fair value of the investments had increased by $9,100. Required: Prepare journal entries to record the above transactions assuming: a. Southeastern College is a public university. b. Southeastern College is a private university.

Southeastern College began the year with endowment investments of $1,430,000 and $850,000 of restricted cash designated by a donor for capital additions. 1. During the year an additional $522,000 donation 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. 2. An alum contributed $350,000 to the permanent endowment and pledged to provide an additional $570,000 early next year. The cash was immediately invested. 3. 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 $65,000 of interest and dividend were received on endowment investments. 4. At year-end, the fair value of the investments had increased by $9,100. Required: Prepare journal entries to record the above transactions assuming: a. Southeastern College is a public university. b. Southeastern College is a private university.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Southeastern College began the year with endowment investments of $1,530,000 and $900,000 of restricted cash designated by a donor for capital additions. 1. During the year an additional $532,000 donation 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. 2. An alum contributed $400,000 to the permanent endowment and pledged to provide an additional $620,000 early next year. The cash was immediately invested. 3. 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 $70,000 of interest and dividend were received on endowment investments. 4. At year-end, the fair value of the investments had increased by $10,100. Required: Prepare journal entries to record the above…
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 journal entries to record the above…
Southeastern College began the year with endowment investments of $1,200,000 and $700,000 of restricted cash designated by a donor for capital additions. 1. During the year an additional $950,000 donation 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. 2. An alum contributed $200,000 to the permanent endowment and pledged to provide an additional $400,000 early next year. The cash was immediately invested. 3. 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 $48,000 of interest and dividend were received on endowment investments. 4. At year-end, the fair value of the investments had increased by $8,500. Required: Prepare journal entries to record the above…
Following are several transactions involving a university. In the current fiscal year, the university was notified by the federal government that next fiscal year it would receive a $480,000 grant for wetlands research. The grant must be used during the next fiscal year. The university received a $500,000 endowment. For the fiscal year, the university recorded $2,400,000 in tuition and fees revenue. Cash refunds of $313,000 were given. The university provided $12,200 in tuition waivers for students with outstanding academic performance. During the year, the university constructed a new street, to allow for the expansion of its student housing efforts. The cost of the street was $1,978,000. The biology department spent $25,000 on wetlands research. At year-end, $1,670 of estimated uncollectible tuition and fees was recorded. Required 1. Prepare journal entries to record the foregoing transactions, assuming the university is a private institution. 2. Prepare journal entries to record the…
This year Southfork began work on a senior center to hold activities for its growing senior citizen population. It is to be financed by a $6,800,000 bond issue, a $680,000 grant, and a $680,000 General Fund transfer. The following transactions occurred during the current year: 1. The General Fund transferred $680,000 to the Senior Center Capital Projects Fund. 2. A plot of land was purchased for $490,000 in cash. (This cost had not been encumbered) 3. Preliminary planning and engineering costs of $113,000 were vouchered. (This cost had not been encumbered.) 4. A contract was signed with Sunset Construction Company for the major part of the project on a bid of $6,750,000. 5. The $6,800,000 bonds were issued at par. 6. Temporary investments were purchased at a cost of $3,680,000. 7. A payable was recorded for a $69,300 billing from the Water and Sewer enterprise fund for the cost of extending water pipes to the new building. (This cost had not been encumbered.) 8. An invoice in the…
This year Southfork began work on a senior center to hold activities for its growing senior citizen population. It is to be financed by a $5,000,000 bond issue, a $500,000 grant, and a $500,000 General Fund transfer. The following transactions occurred during the current year: The General Fund transferred $500,000 to the Senior Center Capital Projects Fund. A plot of land was purchased for $400,000 in cash. (This cost had not been encumbered.) Preliminary planning and engineering costs of $95,000 were vouchered. (This cost had not been encumbered.) A contract was signed with Sunset Construction Company for the major part of the project on a bid of $4,950,000. The $5,000,000 bonds were issued at par. Temporary investments were purchased at a cost of $3,500,000. A payable was recorded for a $49,500 billing from the Water and Sewer enterprise fund for the cost of extending water pipes to the new building. (This cost had not been encumbered.) An invoice in the amount of $1,500,000 was…
This year Riverside began work on an outdoor amphitheater and concession stand at the city’s park. It is to be financed by a $5,500,000 bond issue and supplemented by a $700,000 General Fund transfer. The following transactions occurred during the current year: The General Fund transferred $700,000 to the Park Building Capital Projects Fund. A contract was signed with Restin Construction Company for the major part of the project on a bid of $4,700,000. Preliminary planning and engineering costs of $89,000 were vouchered for the Great Pacific Engineering Company. (This cost had not been encumbered.) A payable was recorded for an $28,500 billing from the Water and Sewer enterprise fund for the cost of extending water pipes to the new concession stand. An invoice in the amount of $2,000,000 was received from Restin for progress to date on the project. The $5,500,000 bonds were issued at par. The amount billed by the contractor (see Transaction 5) less 5 percent retained was paid.…
This year Riverside began work on an outdoor amphitheater and concession stand at the city's park. It is to be financed by a $3,500,000 bond issue and supplemented by a $500,000 General Fund transfer. The following transactions occurred during the current year: 1.The General Fund transferred $500,000 to the Park Building Capital Projects Fund (hint: credit "Other Financing Sources-Interfund Transfers In" for $500,000). 2.A contract was signed with Restin Construction Company for the major part of the project on a bid of $2,700,000. 3.Preliminary planning and engineering costs of $69,000 were vouchered for e Great Pacific Engineering Company. (This cost had not been encumbered, therefore, we do not need the reverse journal entries for encumbrances, but we need to record expenditures and liability for this cost in the capital projects fund.) 4.An invoice in the amount of $1,000,000 was received from Restin for progress to date on the project. 5.The $3,500,000 bonds were issued at par.…
Record the following events that affect (1) Public University and (2) Private University: a. A private grant of $200,000 was received to be used exclusively for defraying costs of holding conferences on the topic of genes. b. By year-end, $110,000 of the grant mentioned in item (a) had been applied to the purpose stipulated. c. The grant provided that amounts not awarded by year-end are to be transferred to the endowment fund. The liability to that fund is recorded. d. An alumnus, who was a former athlete, contributed $15,000 to assist in the search for a basketball coach.
For the year ended June 30, 20X9, a university assessed its students a total of $4,000,000 for tuition and fees. Included in this amount were $300,000 of tuition remissions awarded to graduate teaching assistants and $150,000 of scholarships awarded to undergraduate students. Tuition and fees totaling $3,550,000 were collected during the year ended June 30, 20X9. What amount should be reported in the fund without donor restrictions as net revenue from tuition and fees for the year ended June 30, 20X9?
During the year, a local merchant donated a building to the city of Stage Coach. The original cost of the building was $300,000. Accumulated depreciation at the date of the gift amounted to $250,000. The acquisition value of the donation at the date of the gift was $600,000. At what amount should Stage Coach record this donated property in the General Fund? Multiple Choice $600,000. $50,000. $0. $300,000.
The following events relate to Habitat for Humanity International's activities. If appropriate, assume a discount rate of 3 percent per annum. Expenditures for house building activities are categorized as program expense. Need Part b. answer. 6. A donor contributes $15,000 in cash and signs an agreement to contribute $15,000 at the beginning of each of the next four years, to support specific Habitat for Humanity projects. a. Contribution received now Amount $ 15,000✔ Classification: Net assets without donor restrictions Amount $ x Classification: Net assets with donor restrictions Recorded? Yes b. Contributions received the next four years Recorded? Yes ◆