Exercise 11-7

Eastern University had the following transactions at the beginning of its academic year:

1- Student tuition and fees were billed in the amount of $7,010,000. Of that amount, $4,520,000 was collected in cash.

2- Pell Grants in the amount of $2,002,000 were received by the university.

3- The Pell Grants were applied to student accounts.

Student scholarships, for which no services were required, amounted to $460,000. These were applied to student tuition bills at the beginning of each semester.

Required: Prepare journal entries to record the above transactions assuming: a. Eastern University is a public university.

b. Eastern University is a private university.