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The Following Selected Transactions Affected the Current Unrestricted Funds of Tiger

question 75

Essay

The following selected transactions affected the Current Unrestricted Funds of Tiger State University (public) during the current fiscal year:

a.The Board of Control approved a budget estimating $10,000,000 in revenues and expenses of $9,850,000.

b.Student tuition assessed during the year was $4,000,000, of which $3,700,000 had been collected, with 3% considered uncollectible.

c.Student aid included $500,000 in cash scholarships and $75,000 in tuition remission.

d.Salary and wages during the year included $5,500,000 for instruction, $500,000 for academic support, and $700,000 for institutional support.

e.A grant received of $10,000 in cash was restricted to use for laser technology research.
Required:

Make the journal entries necessary to record the selected transactions.

Definitions:

Deferred Tax Asset

An accounting term that refers to a situation where a business has paid more taxes or estimates that it will pay more taxes than it will owe.

Warranty Expense

Costs a company incurs due to repairing or replacing products under warranty.

Tax Penalty

A tax penalty is a fine or charge imposed by governmental authorities on individuals or organizations for failing to comply with tax laws.

Deferred Tax Asset

An asset on the balance sheet representing taxes paid or carried forward but not yet realized. This can arise due to timing differences between the recognition of income and expenses for financial reporting and tax purposes.