Answered: Prepare journal entries to record the…

Prepare journal entries to record the above transactions assuming: a. Eastern University is a public university. b. Eastern University is a private university.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Income Statement

Income Statement also commonly called a profit and loss statement, one of the key financial statements (considered together with balance sheet and cash flow statement) which shows the revenues and expenses, as well as the gains and losses of a company for a given period. In other words, it presents the financial performance/profitability of a business over a specified accounting period.

Question

Eastern University had the following transactions at the beginning of its academic year:
1. Student tuition and fees were billed in the amount of $7,190,000. Of that amount, $4,640,000 was collected in cash.
2. Pell Grants in the amount of $2,014,000 were received by the university.
3. The Pell Grants were applied to student accounts.
4. Student scholarships, for which no services were required, amounted to $610,000. These were applied to student tuition bills at the
beginning of each semester.
Required:
Prepare journal entries to record the above transactions assuming:
a. Eastern University is a public university.
b. Eastern University is a private university.
Complete this question by entering your answers in the tabs below.
Public
University
Private
University
Prepare journal entries to record the above transactions assuming Eastern University is a public university.
Note: If no entry is required for a transaction or event, select "No Journal Entry Required" in the first account field.
View transaction list
Journal entry worksheet
< A
B
C
D
E
Record the student tuition and fees receivable.
Note: Enter debits before credits.
Transaction
General Journal
Debit
Credit

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