Consider the Following Events for Chase Private University

question 32

Essay

Consider the following events for Chase Private University:
Consider the following events for Chase Private University
a. Unrestricted contributions are pledged in the amount of $500,000.
b. Purchase of material and supplies totaling $100,000 of which $25,000 is not yet paid.
c. Endowment income of $8,000 is restricted to student aid activities.
d. A federal grant for $200,000 was awarded for research.
e. Materials and supplies used were as follows: Student services $10,000, Auxiliary enterprise $25,000
f. Federal government monies of $50,000 restricted for student loans are received.
g. Expenses for the research project in d. totaled $100,000 to date.
h. Term endowments expire, making $10,000 cash available
i. Cash of $10,000 from Life Income Fund Investments is received.
j. Stock with a market value of $45,000 is received from an art patron to finance art gallery improvements.
k. Federal grants for student awards through the Pell Grant program are received in the amount of $175,000.
l. Bills went out for dormitory fees of which $250,000 is paid and $50,000 is still not received.
m. Payment of $100,000 is made on the mortgage.
n. Depreciation on all assets total $125,000. Of this depreciation charge, $25,000 represents depreciation on assets classified as donor restricted. Chase Private University elects to release donor restrictions when assets are placed in service.
o. Art gallery improvements of $25,000 were made with donor-restricted contributions
Required:
Assuming that fund accounting is used, record the events. Identify the appropriate fund for each transaction.

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Definitions:

New Production Method

Innovations or improvements in the process of producing goods or services.

Technological Advance

Refers to the development and application of new technologies and innovation that improve processes, products, or services.

Independent Advance

Progress or development achieved through actions or efforts that are free from external control or influence.

Profit Incentives

Motivations for individuals or companies to undertake activities that increase their profits.