Southeastern State University has chosen to report as a public university

Southeastern state university has chosen to report as

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108.Southeastern State University has chosen to report as a public university reporting as a special-purpose entity engaged only in business-type activities. Deferred Revenues were reported as of July 1, 2011 in the amount of $7,600,000. Record the following transactions related to revenue recognition for the year ended June 30, 2012. Include in the account titles the proper revenue classification (operating revenues, nonoperating revenues, etc.): 1.Deferred revenues related to unearned revenues for the summer session, which ended in August 2011.2.During the fiscal year ended June 30, 2012, student tuition and fees were assessed in the amount of $70,000,000. Of that amount, $61,000,000 was collected in cash. Also, of that amount, $6,000,000 pertained to that portion of the 2012 summer session that took place after June 30, 2012.3.Student scholarships, for which no services were required, amounted to $2,000,000. Students applied these scholarships to their tuition bills at the beginning of the fall and spring semesters.4.Student scholarships and fellowships, for which services were required, such as graduate assistantships, amounted to $2,750,000. These students also applied their scholarship and fellowship awards to their tuition bills at the beginning of each semester.5.Auxiliary enterprise revenues amounted to $6,500,000.6.The state appropriation for operations amounted to $45,000,000.7.The state appropriation for capital outlay amounted to $16,500,000. 8.Gifts for endowment purposes amounted to $2,000,000. Gifts for unrestricted purposes amounted to $3,000,000. Interest income, all unrestricted, amounted to $600,000.24
Chapter 9 Accounting for Special-Purpose Entities, Including Public Colleges and UniversitiesAnswer: SOUTHEASTERN STATE UNIVERSITYGENERAL JOURNALYEAR ENDED JUNE 30, 2012DebitsCredits1.Deferred RevenuesOperating Revenues-Student Tuition and Fees7,600,0007,600,0002.Accounts ReceivableOperating Revenues-Student Tuition and Fees70,000,00070,000,000CashAccounts Receivable61,000,00061,000,000Operating Revenues-Student Tuition and FeesDeferred Revenues6,000,0006,000,0003.Operating Revenue Deduction-Scholarship AllowancesAccounts Receivable2,000,0002,000,0004.Scholarships and Fellowships ExpenseAccounts Receivable2,750,0002,750,0005.CashOperating Revenues-Auxiliary Enterprise Revenue6,500,0006,500,0006.CashNonoperating Revenues-State Appropriation for Operations45,000,00045,000,0007.CashCapital Appropriations(reported after nonoperating revenues and expenses)16,500,00016,500,0008.CashAdditions to Endowment Purposes(reported after nonoperating revenues and expenses)Nonoperating Revenues-Unrestricted GiftsNonoperating Revenues-Investment Income-Unrestricted10,600,0004,000,0006,000,000600,00025
Chapter 9 Accounting for Special-Purpose Entities, Including Public Colleges and Universities

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