Question

Following are several transactions involving a university. In the current fiscal year, the university was notified by the federal government that next fiscal year it would receive a $500,000 grant for wetlands research. The university received a $500,000 endowment. For the fiscal year, the university recorded $2,500,000 in tuition and fees revenue. Cash refunds of $325,000 were given. The university provided $12,600 in tuition waivers for students with outstanding academic performance. During the year, the university constructed a new street, to allow for the expansion of its student housing efforts. The cost of the street was $1,980,000. The biology department spent $25,000 on wetlands research. At year-end, $1,670 of estimated uncollectible tuition and fees was recorded. Required Prepare journal entries to record the foregoing transactions, assuming the university is a private institution. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)Following are several transactions involving a university. In the current fiscal year, the university was notified by the federal government that next fiscal year it would receive a $500,000 grant for wetlands research. The university received a $500,000 endowment. For the fiscal year, the university recorded $2,500,000 in tuition and fees revenue. Cash refunds of $325,000 were given. The university provided $12,600 in tuition waivers for students with outstanding academic performance. During the year, the university constructed a new street, to allow for the expansion of its student housing efforts. The cost of the street was $1,980,000. The biology department spent $25,000 on wetlands research. At year-end, $1,670 of estimated uncollectible tuition and fees was recorded. Required Prepare journal entries to record the foregoing transactions, assuming the university is a private institution. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

a. In the current fiscal year, the university was notified by the federal government that next fiscal year it would receive a $500,000 grant for wetlands research.

Note: Enter debits before credits.

	Transaction General Journal Debit Credit 1.

b.The university received a $500,000 endowment.

Note: Enter debits before credits.

	Transaction General Journal Debit Credit 02

c. Record the receipt of tuition and fees revenue.

Note: Enter debits before credits.

	Transaction General Journal Debit Credit 3(a)

Answer 1

a. Journal Entries for Private institution

No.	Account Name	Debit	Credit
1.	Grant Receivable	$500,000
	Contributions—Temporarily Restricted		$500,000
	(To record the Grant receivable notified by the federal government)
2.	Cash	$500,000
	Contributions—Permanently Restricted		$500,000
	(To record receipt of endowment)
3(a)	Tuition and Fees Receivable	$2,500,000
	Tuition and Fees—Unrestricted		$2,500,000
	(To record the tuition fee revenue)
3(b)	Tuition and Fees—Unrestricted	$325,000
	Cash		$325,000
	(To record cash refunds given)
4.	Tuition and Fees Discount and Allowances	$12,600
	Tuition and Fees Receivable		$12,600
	(To record tuition waivers for students with outstanding academic performance)
5.	Land Improvements	$1,980,000
	Cash		$1,980,000
	(To record the construction of a new street)
6(a)	Research Expense	$25,000
	Cash		$25,000
	(To record amount spent on research)
6(b)	Net Assets—Released from Restrictions—Temporarily Restricted	$25,000
	Net Assets—Released from Restrictions—Unrestricted		$ (25,000)
	(To record release of funds)
7.	Tuition and Fees—Unrestricted	$1,670
	Allowance for Doubtful Accounts		$1,670
	(To record un collectible tuition and fees)

B. Journal Entries for Public Institution

No.	Account Name	Debit	Credit
1.	No Journal Entry Required
2.	Cash	$500,000
	Revenues—Gifts and Grants		$500,000
	(To record receipt of endowment)
3(a)	Accounts Receivable—Tuition and Fees	$2,500,000
	Revenues—Tuition and Fees		$2,500,000
	(To record the tuition fee revenue)
3(b)	Revenues—Tuition and Fees	$325,000
	Cash		$325,000
	(To record cash refunds given)
4.	Tuition and Fees Discount and Allowances	$12,600
	Accounts Receivable—Tuition and Fees		$12,600
	(To record the receipt of tuition waivers)
5.	Infrastructure	$1,980,000
	Cash		$1,980,000
	(To record the construction of a new street)
6.	Research expense	$25,000
	Cash		$25,000
	(To record amount spent on research)
7.	Provision for Bad Debts	$1,670
	Allowance for Doubtful Accounts		$1,670
	(To record un collectible tuition and fees)