Concept explainers
Accounting for expenses: all the expenses are recognized on accrual basis in private universities and colleges. Expenses can be grouped under two groups as educational and general expenses group and auxiliary expenses group.
In educational expenses group expenses for instruction of courses, research, supplies, academic support, student service and student aid expenses such as scholarships fellowships tuition remissions and student grants are recorded.
To explain:how is tuition scholarships reported by private colleges and universities.

Answer to Problem 19.1Q
Tuition scholarships are included in revenue for the period in order to measure full revenue, if university requires employment type work for tuition scholarships, then they are also shown in expenses and it is also recorded as revenue reduction item when no employment type work is required.
Explanation of Solution
The above answer can be explained as, tuition is a major source of revenue for the private universities and colleges hence tuition scholarships are also shown in revenue to determine total revenue and later expensed out based on amount paid when university require employment type work is required for receipt it is shown in expenses.
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Chapter 19 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
- Prepare the journal entries to account for the defined benefit pension plan in the books of Flagstaff Ltd for the year ended December 31 2020 and the pension table for the following pic.arrow_forwardAdditional information(a) All contributions received by the plan were paid by Flagstaff Ltd.(b) The interest rate used to measure the present value of the defined benefitobligation was 9% at 31 December 2019 and 31 December 2020.(c) The asset ceiling was nil at 31 December 2019 and 31 December 2020. Calculate the actuarial gain or loss for the defined benefit obligation for 2020 Calculate the return on plan assets, excluding any amount recognized in net interest for2020arrow_forwardAdditional information(a) All contributions received by the plan were paid by Flagstaff Ltd.(b) The interest rate used to measure the present value of the defined benefitobligation was 9% at 31 December 2019 and 31 December 2020.(c) The asset ceiling was nil at 31 December 2019 and 31 December 2020. Questiona) Determine the surplus or deficit of Flagstaff Ltd.’s defined benefit plan at 31 December2020 and determine the net defined benefit asset or liability that should be recognized by FlagstaffLtd at 31 December 2020 b) Calculate the net interest for 2020arrow_forward
- Rentokil Limited issued a 10-year bond on January 1 2011. It pays interest on January1. The below amortization schedule and interest schedule reflects this. Its year end isDecember 31. a) Indicate whether the bonds were issued at a premium or a discount and explainhow you came to your decision and Compute the stated interest rate and the effective interest rate c) Prepare the journal entries for the following years:I. 2011, 2012 & 2018arrow_forwardOff-set the losses for the appropriate years using the rules as applied in Trinidad and Tobago and those in Jamaica: XYZ Company Limited in year of assessment 2015 makes net income of $8,000,000 and its PYL was $9,000,000. XZY registered in December 2014 for GCT/VAT and declared that its estimated income for the year of assessment 2015 as $2,999,000.arrow_forwardTimberline Services Company, a division of a major energy company, provides various services to the operators in the Rocky Mountain oil fields. For the most recent year, the company reported sales of $22,500,000, net operating income of $7,500,000, and average operating assets of $40,000,000. What is the margin for Timberline Services Company? Accountingarrow_forward
- Individual Income TaxesAccountingISBN:9780357109731Author:HoffmanPublisher:CENGAGE LEARNING - CONSIGNMENT
