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The University of Danvile is a private not-for-profit university that starts the current year with $700.000 in net assets $400.000 without donor restrictions and $300,000 with donor restrictions. The $300,000 is composed of $200,000 with purpose restrictions and $100,000 that must. be held permanently The following transactons occurred during the year. a. Charged students $12 mition for tuition and fees b. Received a donation of equity imvestments that had cost the owner $100,000 but is worth $300,000 currently According to the terms of the gift, the university must hold the investments forever but can spend the dividends for ary purpose. Any changes in the value of these securities must be held forever and cannot be spent c. Received a cash dontion of $700,000 that nust be spent to acquare laboratory equipment. d. Awarded scholarships to students in the amount of $100.000. e. Paid salary expenses of $146,000 (teaching). $80,000 (research). $50,000 (adiministrative) and $40,000 (fundraising). f Learned that a tenured faculty member is contnbuting his services for this year and will not accept his $80,000 salary H is time is 70 percent teaching and 30 percent research 9. Spent $200,000 of the money in (c) on latworatory equipment. The donor hod mode no specifications about the recording of the acquisition. The equipment is used 80 percent of the time for research and 20 percent of the time for teoching h. Learned that the irvestmenth in (b) ore worth $335,000 at the end of the year. 1. Recelved cosh dividends of $9,000 on the investments in (b). 1. Computed depreciation expense for the year on the equipment in (9) as $32.000 K. The school's board of trustees votes to set aside $100,000 of previously unrestricted cash for the future purchase of library boois 1 Recelved an unconditional promise of $10,000 halfway through the year The school expects to collect the money in three years. The $10,000 future payment has a present volue of $7,513 based on a reasenable annual interest rate of to percent m. Recewed an art object as a gift. It is worth 570,000 . For financial reparting. it qualifies as work of arvmuseum piece. The school prefers not to record such gifts unless required a Paid utities and other general expenses of $80,000 (teactirig), $45.000 (reseorch), $43,000 (fundraising), and $50,000 (administrathe). o Received free services from alumni who come to compus eoch week and put books on the shelves in the library Over the course of the year, the school would have paid $103,000 to tave thes work done. p. Near the end of the year, the school recelved a phedge of $40,000 to be collected in two years. It is judged to be conditional and has a present value of 531,200 Required: e. Prepare journal entries for each transaction. (if no entry is required for a transaction/event, select "No journal entry required" in the first Required: a. Prepare journal entries for each transaction. (If no entry is required for a transaction/event, select "No journal entry requir account field. Enter your answers in dollars not in millions and round your answers to the nearest whole dollar amount.) 1 Record $1.2 million for tuition and fees charged to students. 2 Record donation of equity investments that had cost the owner $100,000 but is worth $300,000 currently. 3 Record cash donation of $700,000 that must be spent to acquire laboratory equipment. 4. Record the awarded scholarships to students in the amount of $100,000. 5 Record salary expenses of $146,000 (teaching), $80,000 (research), $50,000 (administrative), and $40,000 (fundraising). a. Prepare journal entries for each transaction. (If no entry is required for a transaction/event, select " account field. Enter your answers in dollars not in millions and round your answers to the nearest wh 6 Record the contribution of a tenured faculty member who 18 will not accept his $80,000 salary. His time is 70 percent teaching and 30 percent research. 7 Record $200,000 of the money spent on laboratory equipment. The equipment is used 80 percent of the time for research and 20 percent of the time for teaching. 8 Record the reclassification entry for the purchase of equipment. 10 Record receipt of cash dividends of $9,000 on the Note : = journal entry has been entered Required: a. Prepare journal entries for each transaction. (If no entry is required for a transaction/event, select "No jo account field. Enter your answers in dollars not in millions and round your answers to the nearest whole 10 Record receipt of cash dividends of $9,000 on the 18 investments. 11 Record $32,000 depreciation expense for the year on the equipment. 12 Record setting aside $100,000 previously unrestricted cash for the future purchase of library books. 13 Record the unconditional promise made for $10,000 halfway through the year expected to be received in three years which has a present value of $7,513 based on a reasonable annual interest rate of 10 percent. 14 Record the interest on the pledge receivable at 10% for Note: = journal entry has been entered a. Prepare journal entries for each transaction. (If no entry is required for a transaction/ev account field. Enter your answers in dollars not in millions and round your answers to th 14 Record the interest on the pledge receivable at 10% tor the half year period on the present value of $7,513. 18 15 Received an art object as a gift. It is worth $70,000. For financial reporting, it qualifies as work of art/museum piece. The school prefers not to record such gifts unless required. 16 Record the payment of utilities and other general expenses of $80,000 (teaching), $45,000 (research), $43,000 (fundraising), and $50,000 (administrative). 17 Record the receipt free services from alumni who come to campus each week and put books on the shelves in the library. Over the course of the year, the school would have paid $103,000 to have this work done. Note: = journal entry has been entered Required: a. Prepare journal entries for each transaction. (If no entry is required for a transaction/event account field. Enter your answers in dollars not in millions and round your answers to the rnancia reporng, it quaries as work or arr/museum piece. The school prefers not to record such gifts unless 18 required. 16 Record the payment of utilities and other general expenses of $80,000 (teaching), $45,000 (research), $43,000 (fundraising), and $50,000 (administrative). 17 Record the receipt free services from alumni who come to campus each week and put books on the shelves in the library. Over the course of the year, the school would have paid $103,000 to have this work done. 18 Record a pledge of $40,000 near the end of the year, to be collected in two years. It is judged to be conditional and has a present value of $31,200. Note: = journal entry has been entered b. Determine the end-of-year balances for net assets without donor restictions ond net assets with donor restrictions by creating a statemant of activities for the period. The school has two program services education and research it also has two supporting services fundraising and administration. (Negative amounts should be indicated by a minus sign. Enter your answers in dollars not in millions and round your answers to the nearest whole dollar amount.)

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