The New City College reported deferred revenues of $210,000 as of July 1, 2023, the first day of its fiscal year. Record the following transactions related to student tuition and fees and related scholarship allowances for New City College for the year ended June 30, 2024. The deferred revenues related to unearned revenues for the summer session, which ended in August. During the fiscal year ended June 30, 2024, student tuition and fees were assessed in the amount of $11,890,000. Of that amount, $9,650,000 was collected in cash. Also, of that amount, $422,000 pertained to that portion of the summer session that took place after June 30, 2024. Student scholarships, for which no services were required, amounted to $612,000. These scholarships were applied to student tuition bills at the beginning of each semester. Student scholarships and fellowships for which services were required (graduate research assistantships) amounted to $830,000. These were applied to student tuition bills at the beginning of each semester. The college incurred $214,000 of qualified expenditures under a cost-reimbursement grant from the Department of Agriculture. By year-end, $160,000 had been received by the Department of Agriculture on the grant. Note: If no entry is required for a transaction or event, select "No Journal Entry Required" in the first account field.
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
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Required:
The New City College reported deferred revenues of $210,000 as of July 1, 2023, the first day of its fiscal year. Record the following transactions related to student tuition and fees and related scholarship allowances for New City College for the year ended June 30, 2024.
- The deferred revenues related to unearned revenues for the summer session, which ended in August.
- During the fiscal year ended June 30, 2024, student tuition and fees were assessed in the amount of $11,890,000. Of that amount, $9,650,000 was collected in cash. Also, of that amount, $422,000 pertained to that portion of the summer session that took place after June 30, 2024.
- Student scholarships, for which no services were required, amounted to $612,000. These scholarships were applied to student tuition bills at the beginning of each semester.
- Student scholarships and fellowships for which services were required (graduate research assistantships) amounted to $830,000. These were applied to student tuition bills at the beginning of each semester.
- The college incurred $214,000 of qualified expenditures under a cost-reimbursement grant from the Department of Agriculture.
- By year-end, $160,000 had been received by the Department of Agriculture on the grant.
Note: If no entry is required for a transaction or event, select "No
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