ACCT567 Unrelated Transactions Problem 16–5
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ACCT567 Unrelated Transactions Problem 16–5
The university received $234,000 in contributed services from nurses providing services…
Description
ACCT567 Unrelated Transactions Problem 16–5
ACCT567 Unrelated Transactions Problem 16–5
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Following are several unrelated transactions involving a university.
- In fiscal year 2011, the university was notified by the federal government that in 2012 it would receive a $500,000 grant for wetlands research.
- The university received $234,000 in contributed services from nurses providing services in its community outreach clinics. The services were part of the regular operation of the clinics.
- 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 university extended $325,000 in loans to students. During the year, $196,000 in loans was collected, along with $2,450 in interest.
- At year-end, the Allowance for Doubtful Accounts was increased by $1,670.
Required
- Prepare journal entries to record the foregoing transactions, assuming the university is a private institution.
- Prepare journal entries to record the foregoing transactions, assuming the university is a public institution.
Preview:
Debits Credits
- GRANT RECEIVABLE 500,000
CONTRIBUTIONS—TEMPORARILY RESTRICTED 500,000
- PROGRAM EXPENSES 234,000
CONTRIBUTIONS—UNRESTRICTED 234,000
- LAND IMPROVEMENTS ….