Prepare Journal Entries to Record the Following Transactions for a Private,not-For-Profit

question 35

Essay

Prepare journal entries to record the following transactions for a private,not-for-profit university.
1.Tuition and fees assessed total $10,000,000,80% of which was collected by year-end; tuition scholarships were granted for $1,300,000,and $650,000 was expected to be uncollectible.
2.Revenues collected from sales and services by the university bookstore were $1,450,000.
3.Salaries and wages paid were $5,600,000,$300,000 of which was for employees of the university bookstore.
4.Financial aid funds of $700,000 were received from the Pell Grant program; the funds were then disbursed to the appropriate students.
5.Contributions of $600,000 were received; $30,000 was restricted for the athletic department and the balance was unrestricted.An additional $70,000 was pledged to the athletic department by the alumni.
6.Athletic equipment was purchased with $42,000 previously set aside for that purpose.

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Definitions:

Output

The amount of goods or services produced by a business, industry, or economy.

Supply Curve

A graphical representation showing the relationship between the price of a good and the amount of it that producers are willing to supply at each price level.

Total Variable Costs

The sum of all costs that vary directly with the level of production or output in the short term.

Output

The quantity of goods or services produced within a given time frame by a firm, sector, or country.