Question
Reporting Donations Dunning College, a private college in northern Idaho, receives the following donations: A parent of a current accounting student contributes $1,500,000, with the
Reporting Donations
Dunning College, a private college in northern Idaho, receives the following donations:
A parent of a current accounting student contributes $1,500,000, with the stipulation that the donation be used to fund a new building for the business school. The college does not know whether it can accumulate enough additional resources to go ahead with the project.
An accounting alumnus contributes $160,000 to the accounting department. The alumnus stipulates that the principal of the contribution remain intact, and any investment income be used to fund a speaker series on current accounting issues. The college invests the $160,000 in securities, and earns income of $8,000, which is used to pay transportation costs and speaker fees.
A retired recruiter from a local CPA firm notifies the college that her will states that $2,300,000 of her estate be paid to the accounting department of the college, with no restrictions on use.
An alumnus promises to contribute $220,000 if the college can raise $220,000 from other sources. The college raises the $220,000 and the alumnus contributes the additional $220,000
A student donates a van valued at $15,000, specifying that the van be used to transport disabled students from their dorm rooms to class.
The car in item 5. depreciates by $5,000
Cash contributions to the college total $9,000,000. The college's Board sets aside $500,000 for repairs to the administration building.
Required For each of the above items, prepare the appropriate journal entry or entries. If the item affects net assets, specify which category of net assets is affected. If a journal entry is not needed, select N/A as the journal descriptions.
General Journal | |||
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Ref. | Description | Debit | Credit |
1 | Answer | Answer | Answer |
Answer | Answer | Answer | |
2 | Answer | Answer | Answer |
Answer | Answer | Answer | |
To record contributions | |||
Answer | Answer | Answer | |
Answer | Answer | Answer | |
To record investment made in securities. | |||
Answer | Answer | Answer | |
Answer | Answer | Answer | |
To record investment income. | |||
Answer | Answer | Answer | |
Answer | Answer | Answer | |
To record release of funds. | |||
Answer | Answer | Answer | |
Answer | Answer | Answer | |
To record payment for speaker series expenses. | |||
3 | Answer | Answer | Answer |
Answer | Answer | Answer | |
4. | Answer | Answer | Answer |
Answer | Answer | Answer | |
5 | Answer | Answer | Answer |
Answer | Answer | Answer | |
6 | Answer | Answer | Answer |
Answer | Answer | Answer | |
To record release of funds. | |||
Answer | Answer | Answer | |
Answer | Answer | Answer | |
7 | Answer | Answer | Answer |
Answer | Answer | Answer |
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