Part A has 18 Journal Entries
The University of Darville is a private not-for-profit university that starts the current year with $700,000 in net assets: $400,000 without donor restrictions and $300,000 with donor restrictions. The $300,000 is composed of $200,000 with purpose restrictions and $100,000 that must be held permanently. The following transactions occurred during the year. a. Charged students $1.2 milion for tultion and fees. b. Recelved a donation of equity Investments that had cost the owner $100,000 but is worth $300,000 currently. According to the terms of the gitt, the university must hold the investments forever but can spend the dividends for any purpose. Any changes in the value of these securtues must be held forever and cannot be spent. c. Recelved a cash donation of $700,000 that must be spent to acquire laboratory equipment. d. Awarded scholarships to students in the amount of $100,000 e. Paid salary expenses of $151,000 (teaching). $80,000 (research). $50,000 (administratve), and $40,000 (fundraising) t Leamed that a tenured faculty member is contributing his services for this year and will not accept his $80,000 salary His time is 70 percent teaching and 30 percent research. g. Spent $200,000 of the money in (c) on laboratory equipment. The donor had made no specifications about the recording of the acquisition. The equipment is used 80 percent of the ume for research and 20 percent of the time for teaching. h. Learned that the imvestments in (b) are worth $341,000 at the end of the year. I Recelved cash divdends of $9.000 on the investments in (b) 1. Computed depreciation expense for the year on the equipment in (g) as $32,000 k. The school's board of trustees votes to set aside $100.000 of previously unrestricted cash for the future purchase of abrary books. t Recelved an unconditional promise or $10.000 haifway through the year. The school expects to collect the money in three years. The $10.000 future payment has a precent value of $7513 based on a reasonable annual interest rate of to percent. m Recenved on art object as o gift. it is worth 570.000 . For financial reporting, it qualifes ab work of artimuseum plece. The school prefers not to record such gins unless required n. Paid utiltles and other general expenses of $85.000 (reaching), $45,000 (research). $43,000 (fundraising), and $50,000 (administrative). 0. Recetved free services from alumni who come to campus eoch week and put books on the shelves in the library over the course of the year, the school would have paid $103,000 to have the work done p. Near the end of the year, the school receved a pledge of $40,000 to be collected in two yeark it is Judged to be conditionar and has a present value of $31200. Requlred: 8. Prepare journal entries for each transaction. (If no entry is required for a transactlon/event, select "No joumal entry required" in the first account fleld. Enter your answers in dollars not in millions and round your answers to the neorest whole doller omount.) Journal entry worksheet 34567818 Fiecord $1.2 million for tuition and fees charged to students. Foer Errere deoits betore credits. b. Determine the end-of-year balances for net assets without donor restikctions and net assets with donor restrictions by creating a statement of activties for the pertod. The school has two program servces education and research. lt also has two supponting services: fundralsing and administration. (Negative amounts should be Indicated by a minus sign. Erter your answers in dollars not In milions and round your answers to the nearest whole dollar amourit.) The University of Darville is a private not-for-profit university that starts the current year with $700,000 in net assets: $400,000 without donor restrictions and $300,000 with donor restrictions. The $300,000 is composed of $200,000 with purpose restrictions and $100,000 that must be held permanently. The following transactions occurred during the year. a. Charged students $1.2 milion for tultion and fees. b. Recelved a donation of equity Investments that had cost the owner $100,000 but is worth $300,000 currently. According to the terms of the gitt, the university must hold the investments forever but can spend the dividends for any purpose. Any changes in the value of these securtues must be held forever and cannot be spent. c. Recelved a cash donation of $700,000 that must be spent to acquire laboratory equipment. d. Awarded scholarships to students in the amount of $100,000 e. Paid salary expenses of $151,000 (teaching). $80,000 (research). $50,000 (administratve), and $40,000 (fundraising) t Leamed that a tenured faculty member is contributing his services for this year and will not accept his $80,000 salary His time is 70 percent teaching and 30 percent research. g. Spent $200,000 of the money in (c) on laboratory equipment. The donor had made no specifications about the recording of the acquisition. The equipment is used 80 percent of the ume for research and 20 percent of the time for teaching. h. Learned that the imvestments in (b) are worth $341,000 at the end of the year. I Recelved cash divdends of $9.000 on the investments in (b) 1. Computed depreciation expense for the year on the equipment in (g) as $32,000 k. The school's board of trustees votes to set aside $100.000 of previously unrestricted cash for the future purchase of abrary books. t Recelved an unconditional promise or $10.000 haifway through the year. The school expects to collect the money in three years. The $10.000 future payment has a precent value of $7513 based on a reasonable annual interest rate of to percent. m Recenved on art object as o gift. it is worth 570.000 . For financial reporting, it qualifes ab work of artimuseum plece. The school prefers not to record such gins unless required n. Paid utiltles and other general expenses of $85.000 (reaching), $45,000 (research). $43,000 (fundraising), and $50,000 (administrative). 0. Recetved free services from alumni who come to campus eoch week and put books on the shelves in the library over the course of the year, the school would have paid $103,000 to have the work done p. Near the end of the year, the school receved a pledge of $40,000 to be collected in two yeark it is Judged to be conditionar and has a present value of $31200. Requlred: 8. Prepare journal entries for each transaction. (If no entry is required for a transactlon/event, select "No joumal entry required" in the first account fleld. Enter your answers in dollars not in millions and round your answers to the neorest whole doller omount.) Journal entry worksheet 34567818 Fiecord $1.2 million for tuition and fees charged to students. Foer Errere deoits betore credits. b. Determine the end-of-year balances for net assets without donor restikctions and net assets with donor restrictions by creating a statement of activties for the pertod. The school has two program servces education and research. lt also has two supponting services: fundralsing and administration. (Negative amounts should be Indicated by a minus sign. Erter your answers in dollars not In milions and round your answers to the nearest whole dollar amourit.)
