Question Two

Governmental University Journal Entries Selected transactions for Mulungushi University are listed below. The university reports as a special purpose government engaged in only business-type activities. All amounts are in thousands of dollars. Transactions:

1. Tuition and fees assessed total K4,500; 70% is collected immediately; scholarships allowances are granted for K120; and K45 is expected to prove uncollectible.

2. Revenues collected from sales and services of the university bookstore, an auxiliary enterprise, were K275.

3. Salaries and wages paid, K1,500; K62 of this was for employees of the university bookstore.

4. Tuition remissions were granted in the amount of K35 for employees.

5. Mortgage payments totaled K520; K290 of this was for interest.

6. Restricted contributions for the Master of Science in Accounting and Finance (MScAF) program were received, K250.

7. Expenditures for the MScAF program were incurred and paid, K230.

8. Equipment was purchased from unrestricted resources, K34.

Requirement: Prepare the necessary journal entries to record these transactions.