Record journal entries for the following transactions for Sultan Private School during the year ended July 31, 2020. Cash contributions were received as follows: AED792,000 for any purpose desired by the school AED233,000 for salary supplements for school faculty AED458,000 to be used during the next fiscal year in any manner desired by the school AED576,000 for the construction of a new auditorium and AED300,000 to be invested permanently, with the income to be used as desired by the school . The school policy is to record all restricted gifts as temporarily restricted and then reclassify when the restriction is lifted. The school expended AED338,000 of the AED792,000 mentioned in (1a) for school furniture. The school expended AED124,000 for salary supplements as directed by the donor in (1b). The AED458,000 in (1c) was retained for use next year, as directed by the donor. AED689,000 was expended for the construction of the new auditorium. The AED300,000 mentioned in (1e) was invested permanently, as directed by the donor at 7% per year and the school received interest for six months by the year end.
Record journal entries for the following transactions for Sultan Private School during the year ended July 31, 2020. Cash contributions were received as follows: AED792,000 for any purpose desired by the school AED233,000 for salary supplements for school faculty AED458,000 to be used during the next fiscal year in any manner desired by the school AED576,000 for the construction of a new auditorium and AED300,000 to be invested permanently, with the income to be used as desired by the school . The school policy is to record all restricted gifts as temporarily restricted and then reclassify when the restriction is lifted. The school expended AED338,000 of the AED792,000 mentioned in (1a) for school furniture. The school expended AED124,000 for salary supplements as directed by the donor in (1b). The AED458,000 in (1c) was retained for use next year, as directed by the donor. AED689,000 was expended for the construction of the new auditorium. The AED300,000 mentioned in (1e) was invested permanently, as directed by the donor at 7% per year and the school received interest for six months by the year end.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Record
- Cash contributions were received as follows:
- AED792,000 for any purpose desired by the school
- AED233,000 for salary supplements for school faculty
- AED458,000 to be used during the next fiscal year in any manner desired by the school
- AED576,000 for the construction of a new auditorium and
- AED300,000 to be invested permanently, with the income to be used as desired by the school .
The school policy is to record all restricted gifts as temporarily restricted and then reclassify when the restriction is lifted.
- The school expended AED338,000 of the AED792,000 mentioned in (1a) for school furniture.
- The school expended AED124,000 for salary supplements as directed by the donor in (1b).
- The AED458,000 in (1c) was retained for use next year, as directed by the donor.
- AED689,000 was expended for the construction of the new auditorium.
- The AED300,000 mentioned in (1e) was invested permanently, as directed by the donor at 7% per year and the school received interest for six months by the year end.
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