Roberta College is a not-for-profit entity.
REQUIRED:
Record the following transactions for the fiscal year ended June 30, 2017.
That year…
a. Tuition revenue for the fall semester 2016 (August - December) was $4 million; tuition for the Spring semester 2017 (January - May) was $3.8 million; tuition for the summer semester 2017 (June 1-August 15) was $2 million. All tuition was received in cash.
b. Faculty salaries for the fall semester were $3 million; for the spring semester, $2.9 million; and for the summer semester, $0.6 million. All salaries are paid at the end of the month earned. Salaries earned in summer are June $0.3 million, July $0.2 million, and August $0.1 million.
c. During June, $3.2 million of tuition applicable to the fall 2017 semester was received in cash.
d. During the year a wealthy benefactor pledged $1 million to the university for the fund-raising campaign to renovate the oldest building on the campus. The benefactor will deliver the cash when renovation is substantially complete.
e. Fixed assets of the university have a historical cost of $120 million, an estimated salvage value of $20 million, and an estimated useful life of 40 years.
f. During the year the university's college of business received notice of a $100,000 grant from the federal government to conduct a research project on the effect of different budgeting techniques on the performance of government employees. During the year the university spent $8,000 on printing questionnaires and $12,000 on faculty salaries for activities directly related to the grant. By year-end the university had not received any cash from the federal government.

Question

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The Answer of Roberta College is a not-for-profit entity.
REQUIRED:
Record the following transactions for the fiscal year ended June 30, 2017.
That year…
a. Tuition revenue for the fall semester 2016 (August - December) was $4 million; tuition for the Spring semester 2017 (January - May) was $3.8 million; tuition for the summer semester 2017 (June 1-August 15) was $2 million. All tuition was received in cash.
b. Faculty salaries for the fall semester were $3 million; for the spring semester, $2.9 million; and for the summer semester, $0.6 million. All salaries are paid at the end of the month earned. Salaries earned in summer are June $0.3 million, July $0.2 million, and August $0.1 million.
c. During June, $3.2 million of tuition applicable to the fall 2017 semester was received in cash.
d. During the year a wealthy benefactor pledged $1 million to the university for the fund-raising campaign to renovate the oldest building on the campus. The benefactor will deliver the cash when renovation is substantially complete.
e. Fixed assets of the university have a historical cost of $120 million, an estimated salvage value of $20 million, and an estimated useful life of 40 years.
f. During the year the university's college of business received notice of a $100,000 grant from the federal government to conduct a research project on the effect of different budgeting techniques on the performance of government employees. During the year the university spent $8,000 on printing questionnaires and $12,000 on faculty salaries for activities directly related to the grant. By year-end the university had not received any cash from the federal government.

Roberta College Is a Not-For-Profit Entity