Chapter 19, Problem 19.4.1P

To determine

Journal Entries:

Journal entries refers to the procedure which records all the transactions whether it is economic transaction or non-economic transaction in a chronological order.

To Prepare:

The journal entries for the foregoing events.

Explanation of Solution

Journal entries for the foregoing events are as follows:

		Current Funds
Entry		Unrestricted		Restricted
Letter	Accounts	Debit	Credit	Debit	Credit
(a)	Cash	$3,000,000
	Accounts Receivable		$362,000
	Revenues-Tuition and Fees		$2,500,000
	Deferred Revenues-Tuition and Fees		$138,000
	(to record the cash collected from students)
(b)	Deferred Revenues-Tuition and Fees	$25,000
	Revenue-Tuition and Fees		$25,000
	(to record the deferred revenues)
(c)	Allowance for Un collectibles	$13,000
	Accounts Receivables		$13,000
	(to record the allowance for un collectibles)
	Revenues- Student Tuition and Fees	$8,000
	Allowance for Un collectibles $\left[\$10,000-\left(\$15,000-\$13,000\right)\right]$		$8,000
	(to record the revenues)
(d)	State Appropriations Receivable	$60,000
	Revenues—Governmental Appropriations		$60,000
	(to record the state appropriations receivable)
(e)	Cash	$80,000
	Revenues—Private Gifts and Grants		$80,000
	(to record the revenues)
	Fund Balance	$30,000
	Cash		$30,000
	(to record the fund balance)
(f)	Cash			$31,000
	Investments				$25,000
	Fund Balance				$6,000
	(to record the investments and fund balance)
	Investments			$40,000
	Cash				$40,000
	(to record the investments)
	Cash			$18,000
	Fund Balance				$18,000
	(to record the fund balance)
(g)	Expenditures	$2,500,000
	Accounts payable		$2,500,000
	(to record the expenditures)
	Accounts Payable	$2,525,000
	Cash $\left(\$100,000+\$2,500,000-\$75,000\right)$		$2,525,000
	(to record the accounts payable)
(h)	Accounts Payable			$5,000
	Cash				$5,000
	(to record the accounts payable)
	Expenditures			$10,000
	Cash				$10,000
	(to record the expenditures)
	Fund Balance			$10,000
	Revenues				$10,000
	(to record the fund balance)
(i)	Other Funds	$40,000
	Cash		$40,000
	(to record the other funds)
(j)	Expenditures	$10,000
	Prepaid expenses		$10,000
	(to record the prepaid expenses)

Table (1)