Manthei University,a Private University,has Provided the Following Information Concerning Selected

question 13

Essay

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.
1.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.
2.Ira Beaker,a renowned chemist and alumnus,donated $7,000,000 to be used for the construction of new chemistry building to be named Beaker Hall.The gift is to be paid to the university in equal installments over a two-year period; the sum for the current year was received in cash.
3 Cash outlays of $2,750,000 were made during the year for construction in progress on the new chemistry building.Other construction projects completed during the year,also financed by temporarily restricted resources,amounted to $1,500,000 for buildings and $500,000 for improvements other than buildings.There was no debt financing used for these projects.
4.During the year bonds with a face value of $180,000 were retired.

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Definitions:

Overhead Costs

The indirect expenses related to the general operation of a company, such as utilities, rent, and administrative salaries, which cannot be directly attributed to specific products or services.

Indirect Costs

Expenses not directly tied to the production of goods or services, such as overhead, utilities, and administration costs.

Allocation Method

A method used in accounting and finance to distribute costs or revenues among different departments, products, or projects based on certain criteria.

Plantwide Overhead Rate

A single overhead absorption rate used throughout a manufacturing plant for allocating indirect costs to products.