Sandoval University, a private, nonprofit university, pays its employees on the 15th of each month for the preceding month. At the end of June, Sandoval accrues gross salaries of $2,250,000 and benefits of $450,000 for the month. 1. Record the accrual journal entry. Enter accounts in order of magnitude (largest to smallest amounts), debits first.

	Account	Debit	Credit
	To record salaries for the month.

2. What other information would need to be captured for external financial reporting? Options:

Natural Classification of Expenses,

Functional classification of expenses,

No other information will be needed.

3. If Sandoval uses the NACUBO functional cost classification, what other considerations would be necessary for external financial reporting?

Options:

No other considerations would be necessary.

Would need to ensure that FASB requirements for functional expense classification are met

Would need to ensure that there were expenses included in all nine NACUBO categories