Windom College, a not-for-prot institution, engaged in the following transactions during its scal year ending June 30,
Question:
1. The college collected $86,400,000 in student tuition.
Of this amount $6,000,000 was applicable to the summer semester, which ran from June 1 to August 30, and $400,000 was applicable to the fall semester that began the following September.
2. It received a contribution of $1,000,000 in stocks and bonds to establish an endowed chair in chemistry.
Income from the chair must be used to supplement the salary of a professor of chemistry.
3. During the year, the chemistry chair endowment earned interest and dividends of $50,000, all of which was used to supplement the salary of the chair holder.
4. The fair value of the investments of the chemistry chair endowment declined by $80,000.
5. Using funds restricted for this purpose, the college purchased $150,000 of equipment for intercollegiate athletics. Inter collegiate athletics is accounted for as an auxiliary enterprise. The college charged depreciation of $30,000.
6. The annual alumni campaign yielded $1,800,000 in pledges. The college estimated that 2 percent would be uncollectible. During the year the college collected $1,500,000 on the pledges.
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Related Book For
Government and Not for Profit Accounting Concepts and Practices
ISBN: 978-1118155974
6th edition
Authors: Michael H. Granof, Saleha B. Khumawala
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