ACCT567 Unrelated Transactions Problem 16–5

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.

1. 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.
2. 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.
3. 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.
4. The university extended $325,000 in loans to students. During the year, $196,000 in loans was collected, along with $2,450 in interest.
5. At year-end, the Allowance for Doubtful Accounts was increased by $1,670.

Required

1. Prepare journal entries to record the foregoing transactions, assuming the university is a private institution.
2. Prepare journal entries to record the foregoing transactions, assuming the university is a public institution.

 Preview:

                                                                                                                            Debits         Credits

1. GRANT RECEIVABLE                                                                         500,000

                 CONTRIBUTIONS—TEMPORARILY RESTRICTED                                   500,000

2. PROGRAM EXPENSES                                                                      234,000

                 CONTRIBUTIONS—UNRESTRICTED                                                           234,000

3. LAND IMPROVEMENTS                                                                            ….