Advanced Accounting
12th Edition
ISBN: 9781305084858
Author: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 19, Problem 19.6.1P
To determine
Journal entries refers to the procedure which records all the transactions whether it is economic transaction or non-economic transaction in a chronological order.
To prepare:
The journal entries for the events.
Expert Solution & Answer
Explanation of Solution
Journal entries for the events are as follows:
Journal | |||
Serial Number | Particulars | Amount | Amount |
a. | Cash | $90,000 | |
Revenues-Temporarily Restricted Contributions | $45,000 | ||
Revenues-Permanently Restricted Contributions | $45,000 | ||
(to record the revenues-temporarily and permanently) | |||
Endowments Investments | $45,000 | ||
Cash | $45,000 | ||
(to record the endowment investments) |
Table (1)
Journal | |||
Serial Number | Particulars | Amount | Amount |
b. | Cash | $1,686,000 | |
Accounts Receivable | $148,000 | ||
Deferred Revenues | $66,000 | ||
Revenues-Student Tuition and Fees | $1,900,000 | ||
(to record the revenues) | |||
Cash | $158,000 | ||
Deferred Revenues | $158,000 | ||
(to record the deferred revenues) |
Table (2)
Journal | |||
Serial Number | Particulars | Amount | Amount |
c. | Cash | $308,000 | |
Allowance for uncollectible tuition and fees | $12,000 | ||
Accounts Receivable | $320,000 | ||
(to record the accounts receivable) | |||
Expenses-Institutional Support | $9,000 | ||
Allowance for uncollectible tuition and fees | $9,000 |
Table (3)
Journal | |||
Serial Number | Particulars | Amount | Amount |
d. | Cash | $6,000 | |
Revenues-Unrestricted investment income | $6,000 | ||
(to record the unrestricted revenues) |
Table (4)
Journal | |||
Serial Number | Particulars | Amount | Amount |
e. | Cash | $75,000 | |
State appropriations receivable | $75,000 | ||
(to record the state appropriations receivables) | |||
State appropriations receivable | $40,000 | ||
Revenues-state government appropriations | $40,000 | ||
(to record the amount transferred of state appropriations receivable to revenues) |
Table (5)
Journal | |||
Serial Number | Particulars | Amount | Amount |
f. | Cash | $30,000 | |
Revenues-Temporarily restricted contributions | $30,000 | ||
(to record the revenues) |
Table (6)
Journal | |||
Serial Number | Particulars | Amount | Amount |
g. | Cash | $24,000 | |
Investments | $21,000 | ||
Revenues-Temporarily restricted gain on the sale of investments | $1,100 | ||
Revenues-Temporarily restricted investment income | $1,900 | ||
(to record the revenues) |
Table (7)
Journal | |||
Serial Number | Particulars | Amount | Amount |
h. | Instruction expenses | $500,000 | |
Research expenses | $400,000 | ||
Institutional support expenses | $100,000 | ||
Student aid expenses | $100,000 | ||
Student services expense | $200,000 | ||
Operation and maintenance of plant expense | $500,000 | ||
Accounts payable | $60,000 | ||
Cash | $1,740,000 | ||
(to record the various expenses) |
Table (8)
Journal | |||
Serial Number | Particulars | Amount | Amount |
i. | Expenses-Research | $13,000 | |
Cash | $13,000 | ||
(to record the payment of expenses) | |||
Reclassifications out-Temporarily restricted | $13,000 | ||
Reclassifications in- Unrestricted | $13,000 | ||
(to record the restricted and unrestricted amount) |
Table (9)
Journal | |||
Serial Number | Particulars | Amount | Amount |
j. | Accounts Payable | $40,000 | |
Cash | $40,000 | ||
(to record the accounts payable) |
Table (10)
Journal | |||
Serial Number | Particulars | Amount | Amount |
k. | Cash | $7,000 | |
Revenues-Temporarily restricted | $7,000 | ||
(to record the revenues-temporarily restricted) |
Table (11)
Journal | |||
Serial Number | Particulars | Amount | Amount |
l. | Cash | $16,000 | |
Pledges Receivable | $14,000 | ||
Revenues- unrestricted contributions | $30,000 | ||
(to record the revenues-temporarily restricted) | |||
Expenses- Uncollectible contributions | $2,000 | ||
Allowance for uncollectible contributions | $2,000 | ||
(to record the revenues-temporarily restricted) |
Table (12)
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
The University of Danville is a private not-for-profit university that starts the current year with $700,000 in net assets: $400,000 unrestricted, $200,000 temporarily restricted, and $100,000 permanently restricted. The following transactions occur during the year.Prepare journal entries for each transaction. Then determine the end-of-year balances for unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets by creating a statement of activities.a. Charged students $1.2 million in tuition.b. Received a donation of investments that had cost the owner $100,000 but was worth $300,000 at the time of the gift. According to the gift’s terms, the university must hold the investments forever but can spend the dividends for any purpose. Any changes in the value of these securities must be held forever and cannot be spent.c. Received a cash donation of $700,000 that must be used to acquire laboratory equipment.d. Gave scholarships in the amount of…
The University of Danville is a private not-for-profit university that starts the current year with $700,000 in net assets: $400,000 unrestricted, $200,000 temporarily restricted, and $100,000 permanently restricted. The following transactions occur during the year.
Prepare journal entries for each transaction. Then determine the end-of-year balances for unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets by creating a statement of activities.
Charged students $1.2 million in tuition.
Received a donation of investments that had cost the owner $100,000 but was worth $300,000 at the time of the gift. According to the gift’s terms, the university must hold the investments forever but can spend the dividends for any purpose. Any changes in the value of these securities must be held forever and cannot be spent.
Received a cash donation of $700,000 that must be used to acquire laboratory equipment.
Gave scholarships in the amount of $100,000 to…
Record journal entries for the following transactions for Sultan Private School during the year ended July 31, 2020.
Cash contributions were received as follows:
AED792,000 for any purpose desired by the school
AED233,000 for salary supplements for school faculty
AED458,000 to be used during the next fiscal year in any manner desired by the school
AED576,000 for the construction of a new auditorium and
AED300,000 to be invested permanently, with the income to be used as desired by the school .
The school policy is to record all restricted gifts as temporarily restricted and then reclassify when the restriction is lifted.
The school expended AED338,000 of the AED792,000 mentioned in (1a) for school furniture.
The school expended AED124,000 for salary supplements as directed by the donor in (1b).
The AED458,000 in (1c) was retained for use next year, as directed by the donor.
AED689,000 was expended for the construction of the new auditorium.
The AED300,000 mentioned in (1e) was…
Chapter 19 Solutions
Advanced Accounting
Ch. 19 - Prob. 1UTICh. 19 - Prob. 2UTICh. 19 - Prob. 3UTICh. 19 - Distinguish assets lmited as to use from...Ch. 19 - Prob. 5UTICh. 19 - Prob. 6UTICh. 19 - Prob. 1ECh. 19 - Record the following operating activities: 1....Ch. 19 - Record the following events that affect the loan...Ch. 19 - Prob. 5E
Ch. 19 - Prob. 6ECh. 19 - Prob. 7ECh. 19 - Prob. 8ECh. 19 - Prob. 9ECh. 19 - Prob. 19.1.1PCh. 19 - Prob. 19.1.3PCh. 19 - Prob. 19.1.4PCh. 19 - Prob. 19.1.5PCh. 19 - Prob. 19.1.6PCh. 19 - Prob. 19.1.7PCh. 19 - Prob. 19.1.8PCh. 19 - Prob. 19.1.9PCh. 19 - Prob. 19.1.10PCh. 19 - Prob. 19.2.1PCh. 19 - Prob. 19.2.2PCh. 19 - Prob. 19.2.3PCh. 19 - Prob. 19.2.4PCh. 19 - Prob. 19.2.5PCh. 19 - Prob. 19.2.6PCh. 19 - Prob. 19.2.7PCh. 19 - Prob. 19.2.9PCh. 19 - Prob. 19.2.10PCh. 19 - Prob. 19.4.1PCh. 19 - Prob. 19.4.2PCh. 19 - Prob. 19.5PCh. 19 - Prob. 19.6.1PCh. 19 - Prob. 19.6.2PCh. 19 - Prob. 19.7.1PCh. 19 - Prob. 19.7.2PCh. 19 - Prob. 19.8.1PCh. 19 - Prob. 19.8.2PCh. 19 - Prob. 19.10.1PCh. 19 - Prob. 19.10.2PCh. 19 - Prob. 19.10.3PCh. 19 - Prob. 19.10.4PCh. 19 - Prob. 19.10.5PCh. 19 - Prob. 19.10.6PCh. 19 - Prob. 19.10.7PCh. 19 - Prob. 19.10.8PCh. 19 - Prob. 19.10.9PCh. 19 - Prob. 19.10.10PCh. 19 - Prob. 19.11.1PCh. 19 - Prob. 19.11.2PCh. 19 - Prob. 19.11.3PCh. 19 - Prob. 19.11.4PCh. 19 - Prob. 19.11.5PCh. 19 - Prob. 19.11.6PCh. 19 - Prob. 19.11.7PCh. 19 - Prob. 19.11.8PCh. 19 - Prob. 19.11.9PCh. 19 - Prob. 19.11.10PCh. 19 - The following nominal accounts were extracted from...Ch. 19 - Prob. 19.15P
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Palestine College, a not-for-profit institution, engaged in the following transactions during its fiscal year ending June 30, 2018. Prepare appropriate journal entries, indicating the net asset category affected (with donor restrictions or without donor restrictions). 1. The college collected student tuition $8 million as follows: $1,500,000 was applicable to the Summer Semester, which ran from June 1 to August 30, and the rest was applicable to the coming Fall Semester (September-December). 2. Using funds restricted for this purpose, the college purchased $300,000 of equipment for their movie theater. The college charged depreciation of $30,000. 3. The annual alumni campaign yielded $2,800,000 in pledges. The college estimated that 2 percent would be uncollectible. During the year the college collected $2,400,000 on the pledges.arrow_forwardYou are preparing a statement of activities for the University of Richland, a private not-for-profit entity. The following questions should be viewed as independent of each other. Part-1 During the current year, a donor gives $400,000 in cash to the school and stipulates that it must hold this money forever. However, any investment income earned on this money must be used for faculty salaries. During the current year, the investment earned $31,000 and, of that amount, the school has expended $22,000 appropriately to date. As a result of these events, what was the overall change in each of the following for the current year? Unrestricted net assets. Temporarily restricted net assets. Permanently restricted net assets. Part-2 A donor gives a large machine to the school on January 1 of the current year. It has a value of $200,000, no salvage value, and a 10-year life. The donor requires that the school keep the machine and use it for all 10 years, and the school agrees. It cannot sell…arrow_forwardThe following events occurred as part of the operations of Kronke Private University for the year 2018 (all amounts are in 000’s): a. To construct a new business building, the university floated at par a $20,000,000, 8% serial bond issued on July 1. Interest is to be paid on December 31 and June 30. In addition, contributions from the community specifically for the new building totaled $5,000,000. b. Payments for construction to date total $7,000,000. c. Interest payments are made on December 31. d. Construction of the building is completed at an additional cost of $18,000,000. Payment is made for $16,000,000; the balance will be paid in one year under a retained percentage agreement. Institutional policy is to release donor restrictions when assets are placed in service. e. The first bond serial payment of $2,000,000 plus interest is paid on December 31. f. A gift of land and a building was received, appraised at $200,000 and $350,000, respectively. The gift was made on the condition…arrow_forward
- You are preparing a statement of activities for the University of Richland, a private not-for-profit entity. The following questions should be viewed as independent of each other.Part 1During the current year, a donor gives $400,000 in cash to the school and stipulates that it must hold this money forever. However, any investment income earned on this money must be used for faculty salaries. During the current year, the investment earned $31,000 and, of that amount, the school has expended $22,000 appropriately to date. As a result of these events, what was the overall change in each of the following for the current year?a. Unrestricted net assets.b. Temporarily restricted net assets.c. Permanently restricted net assets.Part 2 A donor gives a large machine to the school on January 1 of the current year. It has a value of $200,000, no salvage value, and a 10-year life. The donor requires that the school keep the machine and use it for all 10 years, and the school agrees. It cannot sell…arrow_forwardRequired: Record the following transactions on the books of Hope Hospital, which follows FASB (not-for-profit) and AICPA standards. The year is 2020. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 1. Hope recelved $40.000 in cash from pledges made In the prevlous year that were unrestricted as to purpose but Intended to be recelved and expended in 2020. 2. Hope received $98,000 in pledges that indicated the money would be recelved in 2021. The donors Imposed no restrictions other than it could be used for any purpose destred by the board. 3. Hope expended $49,000 for nursing training, using $42,000 of donor restricted resources recelved in 2019 for that purpose. Hope had qualified expenses under the grant totaling $40.000. This Is cost reimbursement, grant 5. Hope received $277,000 in cash. The board decided to Invest the funds for future plant expansion. Vlew transaction llat Journal entry worksheet 3 11 Hope received…arrow_forwardINVOLVE was incorporated as a not-for-profit organization on January 1, 2023. During the fiscal year ended December 31, 2023, the following transactions occurred. A business donated rent-free office space to the organization that would normally rent for $35,000 a year. A fund drive raised $185,000 in cash and $100,000 in pledges that will be paid next year. A state government grant of $150,000 was received for program operating costs related to public health education. Salaries and fringe benefits paid during the year amounted to $208,560. At year-end, an additional $16,000 of salaries and fringe benefits were accrued. A donor pledged $100,000 for construction of a new building, payable over five fiscal years, commencing in 2025. The discounted value of the pledge is expected to be $94,260. Office equipment was purchased for $12,000. The useful life of the equipment is estimated to be five years. Office furniture with a fair value of $9,600 was donated by a local office supply…arrow_forward
- During the year, Private College received the following: An unrestricted $10,000 pledge to be paid the following year. A $70,000 cash gift restricted for scholarships. A notice from a recent graduate that the college is named as a beneficiary of $25,000 in that graduate's will. What amount of contribution revenue should Private College report in its statement of activities? A.) $10,000 B.) $70,000 C.) $105,000 D.) $80,000arrow_forwardINVOLVE was incorporated as a not-for-profit organization on January 1, 2023. During the fiscal year ended December 31, 2023, the following transactions occurred. A business donated rent-free office space to the organization that would normally rent for $35,300 a year. A fund drive raised $186,500 in cash and $103,000 in pledges that will be paid next year. A state government grant of $153,000 was received for program operating costs related to public health education. Salaries and fringe benefits paid during the year amounted to $208,860. At year-end, an additional $16,300 of salaries and fringe benefits were accrued. A donor pledged $103,000 for construction of a new building, payable over five fiscal years, commencing in 2025. The discounted value of the pledge is expected to be $94,560. Office equipment was purchased for $12,300. The useful life of the equipment is estimated to be five years. Office furniture with a fair value of $9,900 was donated by a local office supply…arrow_forwardCatherine College, a private not-for-profit college, received the following contributions during 2017: I. P5,000,000 from alumni for construction of a new wing on the science building to be constructed in 2018. II. P 1,000,000 from a donor who stipulated that the contribution be invested indefinitely and that the earnings be used for scholarships. As of December 31, 2017, earnings from Investments amounted to P50,000. Page 13 For the year ended December 31, 2017, what amount of these contributions should be reported as temporarily restricted revenues on the statement of activities? P 50,000 b. P 5,050,000 c. P5,000,000 d. P6,050,000 a.arrow_forward
- The following gifts are received in 2019 by a not-for-profit entity: $3,000 specified by the donor to be used to pay salaries. $12,000 specified by the donor for new conference room furniture. $6,000 specified by the donor to be held for one year before being expended. The salaries are paid in 2020 and the conference room furniture is purchased in 2019. The donor did not specify any time restriction on holding the conference room furniture. What amount should be reclassified on the Statement of Activities for 2020 from the With Donor Restrictions column to the Without Donor Restrictions column? Multiple Choice $3,000. $6,000. $9,000. $12,000. $15,000.arrow_forwarda not for profit entity provides the following information for the year 2023. Unrestricted pledges received this year, due within 12 months $ 150,000 Contributions to the endowment received $25,000 percentage of unrestricted pledge expected to be received. 92% collections of pledge before the end of the year $ 90,000 pledge written off at year end $ 4,000 Required: prepare the journal entries for these transactions for the year 2023?arrow_forwardRecord the following annuity and life income activities of Private University:1. On July 1, 2010, R. W. Fields, emeritus professor of accounting, moved out of the state. Fields donated to the university common stock with a cost basis of $30,000 and a fair value of $90,000. Fields is to receive an annuity of $6,000 each year for life; at death, the securities are to be sold and the remaining cash balance is to be transferred to the student loan fund. At a 10% annual rate and a life expectancy of 12 years, the present value of the annuity payments is $34,068.2. The stock paid $3,400 in dividends each 12-month period.3. The annuities payable account is adjusted to present value. At year-end, a payment of $6,000 is made to Professor Fields.4. The annuities payable account is adjusted to present value. A second payment was made a year later.5. A month later, Professor Fields died, eliminating the liability for future annuity payments.6. The common stock was sold for $97,000. The cash…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
- Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSONIntermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill EducationFinancial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education
Accounting
Accounting
ISBN:9781337272094
Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:Cengage Learning,
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...
Accounting
ISBN:9780134475585
Author:Srikant M. Datar, Madhav V. Rajan
Publisher:PEARSON
Intermediate Accounting
Accounting
ISBN:9781259722660
Author:J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:9781259726705
Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:McGraw-Hill Education