Luke Skywalker College has chosen to report as a public university reporting as
ID: 2463750 • Letter: L
Question
Luke Skywalker College has chosen to report as a public university reporting as a special-purpose entity engaged. Deferred Revenues were reported as of July 1, 2014 in the amount of $5,000,000. Record the following transactions related to revenue recognition for the year ended June 30, 2015. Include in the account titles the proper revenue classification (operating revenues, nonoperating revenues, etc.).
Deferred revenues related to unearned revenues for the summer session which ended in August 2014. Record the Journal Entry.
A)During the fiscal year ended June 30, 2015, student tuition and fees were assessed in the amount of $78,930,000. Of that amount, $72,328,000 was collected in cash. Also of that amount, $4,307,000 pertained to that portion of the 2015 summer session that took place on June 30, 2015. (3 entries)
B)Student scholarships, for which no services were required, amounted to $2,500,000. Students applied these scholarships to their tuition bills at the beginning of the Fall and Spring semesters. Student scholarships for which services were required, such as graduate assistantships, amounted to $3,475,000. These students also applied their scholarships and fellowship awards to their tuition bills at the beginning of each semester. Record the Journal Entry.
C)Auxiliary enterprises revenues amounted to $35,000,000; $40,000 has not been paid yet. Record the Journal Entry.
D)The state appropriation for operations amounted to $35,400,000. Record the Journal Entry.
E)The state appropriation for capital outlay amounted to 13,500,000. Record the Journal Entry
F)Gifts for endowment purposes amounted to $15,000,500. Gifts restricted for capital projects amounted to $7,000,000. Interest income, all unrestricted amounted to $720,000. Record the Journal Entry.
G)The cash for endowments purposes in the previous question was immediately invested (be careful, there are restricted and unrestricted funds involved). Record the Journal entry.
(The previous question was "Gifts for endowment purposes amounted to $15,000,500. Gifts restricted for capital projects amounted to $7,000,000. Interest income, all unrestricted amounted to $720,000.")
H)Depreciation was recorded, all charged as unrestricted expense. The college owned $1,200,000 in depreciable assets, which had a residual value of $300,000. The college uses straight-line and assumes a 30 year depreciation period. Record the Journal Entry
I)Prepare the closing entries for each of the net position classes. You should use all the nominal accounts.
How do I do the closing the entries for each of the net position?
Explanation / Answer
Answer Sl no. Account Debit Credit 1 Cash 72328000 Fee received 72328000 2 Fee receivable 6602000 Fee received 6602000 3 Fee received 4307000 Unearned Fee 4307000 4 Scholar Ship allowance Exp. 2500000 Fee receivable 2500000 5 Assistant & fellowship exp 3475000 Fee receivable 3475000 6 Cash 34960000 Fee receivable 40000 Student Service Fee 35000000 7 Cash & Cash equivalents 35400000 Non Operating Revenue- state appropriation 35400000 8 Restricted Cash & Cash equivalents 13500000 Capital appropriation - state appropriation 13500000 9 Restricted Cash & Cash equivalents 7000000 Unrestricted Cash & Cash equivalents 8000500 Capital appropriation – Gift 7000000 Non Operating Revenue- Gift 8000500 10 Cash 720000 Interest received 720000 11 Depreciation Exp. 30000 Accumulated Depreciation a/c 30000 Closing Entries Sl no. Account Debit Credit 1 Fee received 74623000 To Profit & Loss a/c 74623000 2 Student Service Fee 35000000 To Profit & Loss a/c 35000000 3 Profit & Loss a/c 2500000 Scholar Ship allowance Exp. 2500000 4 Profit & Loss a/c 3475000 Assistant & fellowship exp 3475000 5 Non Operating Revenue – State government 35400000 Profit & Loss a/c 35400000 6 Non Operating Revenue – Gift 8000500 Profit & Loss a/c 8000500 7 Interest received 720000 Profit & Loss a/c 720000 8 Profit & Loss a/c 30000 Depreciation Exp. 30000
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