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Transaction 1a General Journal Debit Credit Restricted Cash 524,000 Contribution Revenue-with Donor Restrictions (capital additions) 524,000 1b Land, Buildings and Equipment Restricted Cash 1,450,000 1,450,000 € 1c Reclassification from Net Assets with Donor Restrictions-Satisfaction of Capital Asset( 1,450,000 ( Reclassification to Net Assets without Donor Restrictions-Satisfaction of Capital As 1,450,000 2a Restricted Cash 360,000 Pledges Receivable 500,000 Contribution Revenue-with Donor Restrictions (Permanent endowment) 860,000 2b Endowment Investments Restricted Cash 03 Restricted Cash (Scholarships) Investment Income-with Donor Restrictions (Permanent endowment) 04 Endowment Investments Investment Income-with Donor Restrictions (Permanent endowment) 360,000 360,000 66,000 66,000 9,300 9,300 entry is required for a transaction or event, select "No Journal Entry Required" in the first account field. ansaction General Journal 1a Restricted Cash (Capital Additions) Nonoperating Capital Grants and Gifts Debit 524,000 524,000 Credit 1b Capital Assets Restricted Cash (Capital Additions) 1,450,000 x 1,450,000 2a Restricted Cash (Endowment) 360,000 Nonoperating-Additions to Permanent Endowment 360,000 2b Endowment Investments Restricted Cash (Scholarships) 360,000 360,000 03 Restricted Cash (Scholarships) Nonoperating Investment Income 66,000 66,000 04 Endowment Investments Nonoperating-Additions to Permanent Endowment 9,300 9,300 Public University Private University >

Transaction 1a General Journal Debit Credit Restricted Cash 524,000 Contribution Revenue-with Donor Restrictions (capital additions) 524,000 1b Land, Buildings and Equipment Restricted Cash 1,450,000 1,450,000 € 1c Reclassification from Net Assets with Donor Restrictions-Satisfaction of Capital Asset( 1,450,000 ( Reclassification to Net Assets without Donor Restrictions-Satisfaction of Capital As 1,450,000 2a Restricted Cash 360,000 Pledges Receivable 500,000 Contribution Revenue-with Donor Restrictions (Permanent endowment) 860,000 2b Endowment Investments Restricted Cash 03 Restricted Cash (Scholarships) Investment Income-with Donor Restrictions (Permanent endowment) 04 Endowment Investments Investment Income-with Donor Restrictions (Permanent endowment) 360,000 360,000 66,000 66,000 9,300 9,300 entry is required for a transaction or event, select "No Journal Entry Required" in the first account field. ansaction General Journal 1a Restricted Cash (Capital Additions) Nonoperating Capital Grants and Gifts Debit 524,000 524,000 Credit 1b Capital Assets Restricted Cash (Capital Additions) 1,450,000 x 1,450,000 2a Restricted Cash (Endowment) 360,000 Nonoperating-Additions to Permanent Endowment 360,000 2b Endowment Investments Restricted Cash (Scholarships) 360,000 360,000 03 Restricted Cash (Scholarships) Nonoperating Investment Income 66,000 66,000 04 Endowment Investments Nonoperating-Additions to Permanent Endowment 9,300 9,300 Public University Private University >

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 26E: Sinking Funds Entries The following information is available concerning Nunan Corporations sinking...
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2

Southeastern College began the year with endowment investments of $1,450,000 and $860,000 of restricted cash designated by a donor for capital additions.

  1. During the year, an additional $524,000 ddonation was received for capital additions. These funds, together with those contributed in the prior year, were used to purchase 150 acres of land adjacent to the university.
  2. An alum contributed $360,000 to the permanent endowment and pledged to provide an additional $580,000 early next year. The cash was immediately invested.
  3. By terms of the endowment agreement, interest and dividends received on the investments are restricted for scholarships. Gains or losses from changes in the fair value of the investments, however, are not distributed but remain in the endowment. During the year, $66,000 of interest and dividends were received on endowment investments.
  4. At year-end, the fair value of the investments had increased by $9,300.

Required:

Prepare journal entries to record the above transactions assuming:

  1. Southeastern College is a public university.

  2. Southeastern College is a private university.

Transaction 1a General Journal Debit Credit Restricted Cash 524,000 Contribution Revenue-with Donor Restrictions (capital additions) 524,000 1b Land, Buildings and Equipment Restricted Cash 1,450,000 1,450,000 € 1c Reclassification from Net Assets with Donor Restrictions-Satisfaction of Capital Asset( 1,450,000 ( Reclassification to Net Assets without Donor Restrictions-Satisfaction of Capital As 1,450,000 2a Restricted Cash 360,000 Pledges Receivable 500,000 Contribution Revenue-with Donor Restrictions (Permanent endowment) 860,000 2b Endowment Investments Restricted Cash 03 Restricted Cash (Scholarships) Investment Income-with Donor Restrictions (Permanent endowment) 04 Endowment Investments Investment Income-with Donor Restrictions (Permanent endowment) 360,000 360,000 66,000 66,000 9,300 9,300
Transcribed Image Text:Transaction 1a General Journal Debit Credit Restricted Cash 524,000 Contribution Revenue-with Donor Restrictions (capital additions) 524,000 1b Land, Buildings and Equipment Restricted Cash 1,450,000 1,450,000 € 1c Reclassification from Net Assets with Donor Restrictions-Satisfaction of Capital Asset( 1,450,000 ( Reclassification to Net Assets without Donor Restrictions-Satisfaction of Capital As 1,450,000 2a Restricted Cash 360,000 Pledges Receivable 500,000 Contribution Revenue-with Donor Restrictions (Permanent endowment) 860,000 2b Endowment Investments Restricted Cash 03 Restricted Cash (Scholarships) Investment Income-with Donor Restrictions (Permanent endowment) 04 Endowment Investments Investment Income-with Donor Restrictions (Permanent endowment) 360,000 360,000 66,000 66,000 9,300 9,300
entry is required for a transaction or event, select "No Journal Entry Required" in the first account field. ansaction General Journal 1a Restricted Cash (Capital Additions) Nonoperating Capital Grants and Gifts Debit 524,000 524,000 Credit 1b Capital Assets Restricted Cash (Capital Additions) 1,450,000 x 1,450,000 2a Restricted Cash (Endowment) 360,000 Nonoperating-Additions to Permanent Endowment 360,000 2b Endowment Investments Restricted Cash (Scholarships) 360,000 360,000 03 Restricted Cash (Scholarships) Nonoperating Investment Income 66,000 66,000 04 Endowment Investments Nonoperating-Additions to Permanent Endowment 9,300 9,300 Public University Private University >
Transcribed Image Text:entry is required for a transaction or event, select "No Journal Entry Required" in the first account field. ansaction General Journal 1a Restricted Cash (Capital Additions) Nonoperating Capital Grants and Gifts Debit 524,000 524,000 Credit 1b Capital Assets Restricted Cash (Capital Additions) 1,450,000 x 1,450,000 2a Restricted Cash (Endowment) 360,000 Nonoperating-Additions to Permanent Endowment 360,000 2b Endowment Investments Restricted Cash (Scholarships) 360,000 360,000 03 Restricted Cash (Scholarships) Nonoperating Investment Income 66,000 66,000 04 Endowment Investments Nonoperating-Additions to Permanent Endowment 9,300 9,300 Public University Private University >
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