The following problem is an example of typical transactions that a not-for-profit college or university might have. Use the information in the FASB Accounting Standards Codification to help you answer the requirements of the problem.

Beatty College, a not-for-profit college, engaged in the following transactions during its fiscal year ending June 30, 2015.

Requirements: Prepare appropriate journal entries, indicating the types of funds (by restrictiveness) in which they would be recorded.

Transactions:

1. In May 2015 Beatty College collected $100,000,000 in student tuition. Of this amount $10,000,000 was applicable to the summer semester, which ran from June1 to August 30, 2015, and $1,000,000 was applicable to the fall semester that began September, 2015.

2. Beatty College received a contribution of $1,000,000 in stocks and bonds to establish an endowed chair in accounting. Income from the chair endowment must be used to supplement the salary of a professor accounting.

3. During 2015, the accounting chair endowment earned interest and dividends of $50,000 all of which was used to supplement the salary of the chair of the accounting department. (Note: a. record the investment earnings and b. record cash paid for the chairs salary.) Use the same $50,000 for both entries.

4. The fair value of the investment of the accounting chair endowment declined by $80,000.

5. Using funds restricted for this purpose, the college purchased $150,000 of equipment for the college athletics department.

6. Beatty College recorded depreciation of $30,000.

7. The annual alumni campaign yielded $1,800,000 in pledges. The college estimated that 2% would be uncollectible. During the year, Beatty college collected $1,500,000 on the pledges.