Northern University received state appropriations as follows:
•Unrestricted general purposes $1,300,000
•Capital outlay,set aside for specific projects 1,700,000
What is the journal entry to record this event?
A) Cash and Cash Equivalents 1,300,000 Restricted Cash and Cash Equivalents 1,700,000
Nonoperating Revenues - State Appropriations 1,300,000
Capital Appropriations 1,700,000
B) Cash and Cash Equivalents 3,000,000 Nonoperating Revenues - State Appropriations 1,300,000
Capital Appropriations 1,700,000
C) Cash and Cash Equivalents 3,000,000 Nonoperating Revenues - State Appropriations 1,300,000
Nonoperating Revenues-Capital Appropriations 1,700,000
D) Cash and Cash Equivalents 1,700,000 Restricted Cash and Cash Equivalents 1,300,000
Nonoperating Revenues - State Appropriations 1,700,000
Capital Appropriations 1,300,000

Question

Quizplus · Accepted Answer

The unrestricted funds are recorded as "Cash and Cash Equivalents" and the restricted funds for capital projects are recorded as "Restricted Cash and Cash Equivalents." The corresponding revenues are recorded as "Nonoperating Revenues - State Appropriations" for general purposes and "Capital Appropriations" for the capital outlay.

Northern University Received State Appropriations as Follows