Record the Following Transactions on the Books of Franklin College

question 59

Essay

Record the following transactions on the books of Franklin College, a private college. All of the transactions are for the year 2017.
a) The College received $315,000 in funds that were pledged in 2016, to be used for unrestricted purposes in 2017.
b) The College was awarded $500,000 in reimbursement type grants from the federal government. $430,000 was expended on these projects and $410,000 in cash was received.
c) On Dec. 1, the College received a pledge of $6,000,000 to build a new basketball arena. The funds were not expended or received in 2017, but are expected to be received early in 2018.
d) The College had received cash of $200,000 in 2016 to be used to purchase computer equipment for the student labs. The equipment was purchased and put into service in early January 2017. The equipment has a five-year life and the College follows the practice of maintaining the balance of fixed assets net of depreciation) in the temporarily restricted net asset category.
e) On Dec. 31, the College received an unrestricted pledge to receive $20,000 per year each year for six years, beginning on December 31, 2017. The first installment of $ 20,000 was received on that date. The discount rate is 6%. The present value of six payments of $20,000 is $104,248.

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Definitions:

Human Resources

The department within an organization that is focused on the recruitment, management, and direction of its personnel.

Career Services Center

A facility or office in educational institutions that provides students and alumni with resources and guidance for career development and job search.

Hard Skills

Specific, teachable abilities or skill sets that are easy to quantify, such as coding, writing, math, or the ability to use certain software.

Technical Skills

Specific abilities or knowledge related to the application of techniques, processes, or methods in a particular field.