Question
In: Accounting
Southeastern College began the year with endowment investments of $1,200,000 and $700,000 of restricted cash designated...
Southeastern College began the year with endowment investments
of $1,200,000 and $700,000 of restricted cash designated by a donor
for capital additions.
During the year an additional $500,000 donation was received for capital additions. These funds, together with those contributed in the prior year, were used to purchase 150 acres of land adjacent to the university.
An alum contributed $200,000 to the permanent endowment and pledged to provide an additional $400,000 early next year. The cash was immediately invested.
By terms of the endowment agreement, interest and dividends received on the investments are restricted for scholarships. Gains or losses from changes in the fair value of the investments, however, are not distributed but remain in the endowment. During the year, $48,000 of interest and dividends were received on endowment investments.
At year-end, the fair value of the investments had increased by $7,000.
Required:
Prepare journal entries to record the above transactions
assuming:
a. Southeastern College is a public
university.
b. Southeastern College is a private
university.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Southeastern College began the year with endowment investments of $1,200,000 and $700,000 of restricted cash designated...
Southeastern College began the year with endowment investments
of $1,200,000 and $700,000 of restricted cash designated by a donor
for capital additions.
During the year an additional $500,000 donation was received for
capital additions. These funds, together with those contributed in
the prior year, were used to purchase 150 acres of land adjacent to
the university.
An alum contributed $200,000 to the permanent endowment and
pledged to provide an additional $400,000 early next year. The cash
was immediately invested.
By...
Southeastern College began the year with endowment investments of $1,290,000 and $780,000 of restricted cash designated...
Southeastern College began the year with endowment investments
of $1,290,000 and $780,000 of restricted cash designated by a donor
for capital additions.
During the year an additional $508,000 donation was received
for capital additions. These funds, together with those contributed
in the prior year, were used to purchase 150 acres of land adjacent
to the university.
An alum contributed $280,000 to the permanent endowment and
pledged to provide an additional $500,000 early next year. The cash
was immediately invested.
By...
How much of temporarily restricted funds did the college expend during the year? Is this the...
How much of temporarily restricted funds did the college expend
during the year? Is this the money released from Temporarily
restricted assets to unrestricted?
A company records a current year depreciation charge of $1,200,000 which ... A.decreases cash flow from...
A company records a current year depreciation charge of
$1,200,000 which ...
A.decreases cash flow from operations by $120,000.
B.decreases net income but not the cash flow of the firm.
C.increases the shareholders' equity by $120,000.
D. increases total assets by $120,000.
Carlsville Company began operations in the current year and had no prior stock investments. The following...
Carlsville Company began operations in the current year and had
no prior stock investments. The following transactions are from its
short-term stock investments with insignificant influence. Prepare
journal entries to record these transactions. On December 31,
prepare the adjusting entry to record the fair value adjustment for
the portfolio of stock investments.
July
22
Purchased 1,300 shares of Hunt Corp. at $29 per share.
Sept.
5
Received a $2 cash dividend for each share of Hunt Corp.
Sept.
27
Purchased...
Zeus Investments Inc. is a regional investment company that began operations on January 1, Year 1....
Zeus Investments Inc. is a regional investment company that
began operations on January 1, Year 1. The following transactions
relate to trading securities acquired by Zeus Investments Inc.,
which has a fiscal year ending on December 31:
Year 1
Feb. 14.
Purchased 3,500 shares of Apollo Inc. as a trading security at
$39 per share plus a brokerage commission of $700.
Apr. 1.
Purchased 1,700 shares of Ares Inc. as a trading security at
$16 per share plus a brokerage...
Kitty Company began operations in the current year and acquired short-term debt investments in trading securities.
Kitty Company began operations in the current year and acquired short-term debt investments in trading securities. The year-end cost and fair values for its portfolio of these debt investments follow.
Portfolio of Trading Securities
Cost
Fair Value
Tesla Bonds
$
12,900
$
9,675
Nike Bonds
21,200
22,260
Ford Bonds
5,300
4,240
Prepare journal entry to record the...
Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2017. In the...
Karane Enterprises, a calendar-year manufacturer based in
College Station, Texas, began business in 2017. In the process of
setting up the business, Karane has acquired various types of
assets. Below is a list of assets acquired during 2017:
Asset
Cost
Date Placed
in Service
Office furniture
$
150,000
02/03/2017
Machinery
1,560,000
07/22/2017
Used delivery truck*
40,000
08/17/2017
*Not considered a luxury automobile.
During 2017, Karane was very successful (and had no §179
limitations) and decided to acquire more assets this...
Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2018. In the...
Karane Enterprises, a calendar-year manufacturer based in
College Station, Texas, began business in 2018. In the process of
setting up the business, Karane has acquired various types of
assets. Below is a list of assets acquired during 2018:
Asset
Cost
Date Placed in Service
Office furniture
$
150,000
02/03/2018
Machinery
1,560,000
07/22/2018
Used delivery truck*
40,000
08/17/2018
*Not considered a luxury automobile.
During 2018, Karane was very successful (and had no §179
limitations) and decided to acquire more assets in...
Karane Enterprise, a calendar year manufacturer based on college Station, Texas, began business in 2017. In...
Karane Enterprise, a calendar year manufacturer based
on college Station, Texas, began business in 2017. In the process
of setting up the business, Karane has acquired various types of
assets. Below is a list of assets acquired during 2017 :
Assets.
Costs. Date in service
Office furniture. 150,000.
2/3/2017
Machinery.
1,560,000. 7/22/2017
Used delivery trucks 40,000. 8/17/2017
During 2017, Karane was very successful (and had no
179 limatation) and decided to aquire more assets this next year to
increase its...
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