Accounting For Governmental & Nonprofit Entities
18th Edition
ISBN: 9781259917059
Author: RECK, Jacqueline L., Lowensohn, Suzanne L., NEELY, Daniel G.
Publisher: Mcgraw-hill Education,
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Question
Chapter 15, Problem 18EP
a.
To determine
Prepare journal entries to record the transactions for the year ended June 30, 2020.
a.
Expert Solution
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.
To determine
Prepare a statement of activities for the year ended June 30, 2020.
a.
Expert Solution
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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At the beginning of the fall semester beauty state university a public university, billed tuition and fees at a gross amount of $4,800,000. of this amount, the university awarded a scholarship of $250,000 and $50,000 was believed to be uncollectible. The University also offered a generous tuition discount for the dependents of its employees. An additional $300,000 of the gross amount was awarded as employer provided tuition discounts.
1. Record the journal entry for the billing described above.
2. Assume that the transactions described above were in the summer instead of the fall. The billing was on June 25, fiscal year end is June 30, and the semester does not begin until July 15. How would the journal entries differ?
3. How would the journal entries in #1 differ for a private, nonprofit university?
A non-profit university assessed its students P2,000,000 in tuitions and fees for the semester. Compute for the net revenues from tuitions and fees given the following additional information:
Scholarships granted to academic scholars
100,000
Scholarships granted to faculty members in post-graduate programs
60,000
Refunds of class cancellations and withdrawal of enrolment
40,000
Estimated uncollectible amounts
160,000
Scholarships granted to student assistants
240,000
Scholarships granted to dependents of faculty members
120,000
For the 2019 fall semester, Forest Public University assessed its students $6,000,000 (net of refunds), covering tuition and fees for educational and general purposes. However, only $5,700,000 was expected to be realized because tuition remissions of $80,000 were allowed to faculty members’ children attending Forest, and scholarships totaling $220,000 were granted to students. What amount should Forest include in educational and general current funds revenues from student tuition and fees?a. $5,920,000b. $6,000,000c. $5,780,000d. $5,700,000
Chapter 15 Solutions
Accounting For Governmental & Nonprofit Entities
Ch. 15 - Prob. 1QCh. 15 - Prob. 2QCh. 15 - Prob. 3QCh. 15 - Prob. 4QCh. 15 - Prob. 5QCh. 15 - Prob. 6QCh. 15 - Prob. 7QCh. 15 - What is UPMIFA, and why is it important to...Ch. 15 - How can the performance of colleges and...Ch. 15 - Prob. 10Q
Ch. 15 - Prob. 12CCh. 15 - Prob. 14CCh. 15 - Prob. 15.1EPCh. 15 - Prob. 15.2EPCh. 15 - Prob. 15.3EPCh. 15 - Prob. 15.4EPCh. 15 - Prob. 15.5EPCh. 15 - Prob. 15.6EPCh. 15 - Prob. 15.7EPCh. 15 - Prob. 15.8EPCh. 15 - Prob. 15.9EPCh. 15 - Prob. 15.10EPCh. 15 - Prob. 16EPCh. 15 - Prob. 17EPCh. 15 - Prob. 18EPCh. 15 - Prob. 19EPCh. 15 - Prob. 20EPCh. 15 - Prob. 21EPCh. 15 - Prob. 22EPCh. 15 - Prob. 23EP
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