Buckwall University (BU), a private not-for-profit university, had the following transactions during the year ended June 30, 20X8:
1. Assessed students $2,000,000 for tuition for the winter semester, starting in January 20X8.
2. Received $1,000,000 from the federal government to be distributed to qualified students as loans and grants.
3. Recognized depreciation expense of $200,000 on university buildings and equipment for the fiscal year.
4. Received $1,500,000 in alumni contributions restricted to the construction of a new library building. Construction is expected to begin in September 20X8.
5. Invested the contributions received in item 4 in equity securities that had a market value of $1,650,000 on June 30, 20X8.
6. Received $75,000 of investment revenue from investments in a term endowment. The donor stipulated that the investment revenue be used to fund scholarships for qualified entering freshmen.
7. Used $60,000 of the investment revenue in item 6 to fund scholarships during the year ended June 30, 20X8.
8. Designated $250,000 of cash for refurbishing the steam tunnels used for heating the university during the winter.
9. Received from an alumnus a contribution of artwork with a fair value of $3,750,000. The donor has stipulated that the artwork be preserved, that it not be sold, and that it be on public view in the university museum. The university has a policy of recording donations of works of art and historical treasures.
10. Acquired debt securities at a cost of $400,000 during the year that the governing board required to keep intact for the next five years and to use their interest revenue for funding summer research grants to faculty of BU.
11. Received during the year ended June 30, 20X8, interest revenue from the debt securities in item 10, which amounted to $18,000, of which $12,000 was used for research grants.

Indicate for each numbered transactions the net asset class it affected for the year ended June 30, 20X8. The three net asset classes are
(1) Unrestricted,
(2) Temporarily restricted, and
(3) Permanently restricted.
Your answer also should specify the dollar amount and whether the asset class increased or decreased.

  • CreatedMay 23, 2014
  • Files Included
Post your question