Concept explainers
a.
State the reporting standards of each statement and the differences in the format due to reporting standards.
b.
Determine the percentage of tuition fees with respect to total revenues of College C from state appropriations and from grants and contributions. Explain the differences in the amounts with respect to College MS and state whether the amounts from these sources have changed for each college in prior years.
c.
Determine the operating net income/loss per student for each college. State whether the colleges are generating much income per student and explain the difficulties in determining the operating net income/loss for each of the college.
d.
Identify the statement that provides more transparent information in respect to restrictions on the use of revenues and on the amounts of available restricted resources and explain the same.
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Accounting For Governmental & Nonprofit Entities
- Manthei University, a private university, has provided the following information concerning selected transactions. Prepare in general journal form the entries required for each of the transactions. (If no entry is required for a transaction or event, select "No Journal Entry Required" in the first account field.) The university was awarded a federal grant in the amount of $1,800,000 to be used for a specified research project (determined to be a nonexchange transaction). During the year, the entire $1,800,000 was received and expenses for the specified project totaled $1,000,000. Ira Beaker, a renowned chemist and alumnus, donated $7,000,000 to be used for the construction of a new chemistry building to be named Beaker Hall. The gift is to be paid to the university in equal installments over a 2-year period; the sum for the current year was received in cash. Cash outlays of $2,750,000 were made during the year for construction in progress on the new chemistry building. Other…arrow_forwardWhich of the following is required as part of the complete set of financial statements for a private college or university? a. Statement of changes in financial position b. Statement of activities c. Statement of revenues, expenses, and changes in net assets d. None of the abovearrow_forwardRead the following journal article: "25 Years of State and Local Governmental Financial Reporting—An Accounting Standards Perspective," The Government Accountants Journal, Fall 1992. Or, as an alternative possibility, do a search of books in the college library for advanced accounting textbooks or government accounting textbooks that were published prior to 2000. Required Accounting for state and local governments has changed considerably in the last 10-20 years. Write a report to highlight some of the differences you noted between the process described before 2000 and the process that has been presented in this chapter and the preceding one in this textbook.arrow_forward
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- The statement of financial position of Washbud Private University as of the end of its fiscal year, June 30, 2018, is as attached:The following transactions occurred during the fiscal year ended June 30, 2019 (all numbers are in 000’s):a. On July 7, 2018, a gift of $90,000 was received from an alumnus. The alumnus requested that one-half of the gift be used for the purchase of equipment for the university athletic department and the remainder be used for the establishment of a permanently restricted endowment.The alumnus further requested that the income generated by the endowment be used annually to award a scholarship to a qualified disadvantaged student. On July 20, 2018, the board of trustees resolved that the funds of the newly established endowment would be invested in savings certificates. On July 21, 2018, the savings certificates were purchased.b. Revenues from student tuition and fees applicable to the year ended June 30, 2019, amounted to $1,900,000. Of this amount, $66,000…arrow_forwardWhich of the following is most likely to be true about the financial reporting of a public college or university? Choose the correct.a. It resembles the financial reporting of private colleges and universities.b. It will continue to use its own unique style of financial reporting.c. It resembles the financial reporting made by a proprietary fund within the fund financial statements for a state or local government.d. It will soon be reported using a financial statement format unique to the needs of public colleges and universities that GASB is scheduled to create.arrow_forwardPlease help me with this question from my testbook What is the significance of the financial statements which have been included in the annual reports of the two organizations?arrow_forward
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- Essentials of Business Analytics (MindTap Course ...StatisticsISBN:9781305627734Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. AndersonPublisher:Cengage Learning