ACCT567 Elizabeth College Problem 16-3

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ACCT567 Elizabeth College Problem 16-3
Private College Transactions. Elizabeth College, a small private college, had the following transactions in…

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Description

ACCT567 Elizabeth College Problem 16-3

ACCT567 Elizabeth College Problem 16-3

 A+ Private College Transactions

Elizabeth College, a small private college, had the following transactions in fiscal year 2011.

  1. Billings for tuition and fees totaled $5,600,000. Tuition waivers and scholarships of $61,500 were granted. Students received tuition refunds of $101,670.
  2. During the year the college received $1,891,000 cash in unrestricted private gifts, $575,200 cash in temporarily restricted grants, and $1,000,000 in securities for an endowment.
  3. A pledge campaign generated $626,000 in unrestricted pledges, payable in fiscal year 2012.
  4. Auxiliary enterprises provided goods and services that generated $94,370 in cash.
  5. Collections of tuition receivable totaled $5,380,000.
  6. Unrestricted cash of $1,000,000 was invested.
  7. The college purchased computer equipment at a cost of $10,580.
  8. During the year the following expenses were paid:
  9. Instruction provided $450,000 in services related to the temporarily restricted grant recorded in transaction 2.
  10. At year-end, the allowance for uncollectible tuition and fees was increased by $7,200. The fair value of investments had increased …

Required

  1. Prepare journal entries in good form to record the foregoing transactions for the fiscal year ended June 30, 2011.
  2. Prepare a statement of activities for the year ended June 30, 2011. Assume beginning net asset amounts of $7,518,000 unrestricted, $200,000 temporarily restricted, and $5,000,000 permanently restricted.