Question

In January 2015, Kirkland University receives a pledge of $200,000, to be used exclusively to support research in a specialized area of communication disorders. The university’s fiscal year ends on July 31.
In December 2015 (the following fiscal year), Kirkland receives the pledged contribution of $200,000 and spends $150,000 on qualifying research.
1. Prepare all required journal entries to reflect the transactions described. Indicate the type of fund in which the entries would be made.
a. Assume first that Kirkland is a private, not-for-profit university.
b. Assume instead that Kirkland is a public university and that it elects to be accounted for (i) as a government engaging exclusively in business-type activities and (ii) as a full-service government that accounts for the contribution in a governmental fund.
2. On what grounds, if any, can you justify different principles of accounting for the same transaction depending on type of institution (public or private) or assumption as to type of public institution?



$1.99
Sales9
Views308
Comments0
  • CreatedAugust 13, 2014
  • Files Included
Post your question
5000