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:

Conduct

The manner in which a person behaves, especially in a particular place or situation.

Unauthorized Contract

An agreement made by a person who does not have the legal authority to do so on behalf of a party.

Ratifies

The act of formally approving or confirming a decision or agreement, making it officially valid.

Valid

Legally sound, effective, and binding.