State University Maintains Accounts for Each of Its Student Groups

question 2

Essay

State University maintains accounts for each of its student groups. The monies collected by the Accounting Fraternity are deposited with the university. As the fraternity authorizes disbursements of its funds, the university disburses the monies. During the year, the fraternity engaged in the following transactions.
REQUIRED:
Prepare the appropriate entries on the books of the university. Be sure to indicate in which fund the entries should be recorded.
a) The fraternity deposited $400 in student dues.
b) The fraternity authorized payments of $350 to Delta Airlines for an airline ticket for a member to fly to the national meeting, and of $100 to the National Accounting Fraternity for registration.
c) The fraternity received a contribution of $500 from a major accounting firm to be used by the fraternity to offset the cost of attending the national meeting.
d) The fraternity operated a book exchange on a consignment basis and collected revenues of $10,000. It authorized the university to write $9,000 of checks to the students whose books the fraternity had sold. The fraternity was pleased with the $1,000 profit.
e) The fraternity received a reimbursement of $150 from the National office to offset the costs of attending the National meeting.

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Definitions:

Criterion

A standard or rule by which something can be judged or decided.

Timely Information

Information received or provided at an appropriate time to influence decision-making.

Decision Making

A process of selecting the best option from among various alternatives based on criteria and information.

Weaknesses

Refers to the limitations or deficiencies that can hinder an entity's ability to achieve its objectives.