Question: Select the correct response for each of the following 1

Select the correct response for each of the following.
1. For the summer session of 20X2, Pacific University assessed its students $1,700,000 (net of refunds) covering tuition and fees for educational and general purposes. However, only $1,500,000 was expected to be realized because scholarships totaling $150,000 had been granted to students, and tuition remissions of $50,000 had been allowed to faculty members’ children attending Pacific. What amount should Pacific include as revenues from student tuition and fees?
a. $1,500,000.
b. $1,550,000.
c. $1,650,000.
d. $1,700,000.

2. Tuition remissions for graduate student teaching assistantships should be classified by a university as
Revenue Expenditures
a. No ..... No
b. No..... Yes
c. Yes ..... Yes
d. Yes..... No

3. For the fall semester of 20X1, Dover University assessed its students $2,300,000 for tuition and fees. The net amount realized was only $2,100,000 because of the following revenue reductions:
Refunds occasioned by class cancellations and student withdrawals $ 50,000
Tuition remissions granted to faculty members’ families 10,000
Scholarships and fellowships (for which no services are rendered) 140,000
How much should Dover report for the period for revenue from tuition and fees?
a. $2,100,000.
b. $2,150,000.
c. $2,250,000.
d. $2,300,000.

Unrestricted net assets comprised $7,500,000 of assets and $4,500,000 of liabilities (including deferred revenues of $150,000). Among the receipts recorded during the year were unrestricted gifts of $550,000 and restricted grants totaling $330,000, of which $220,000 was expended during the year for current operations and $110,000 remained unexpended at the close of the year.
Volunteers from the surrounding communities regularly contribute their services to Global, which normally purchases them; it pays the volunteers nominal amounts to cover their travel costs.
During the year, the amount for travel paid to these volunteers aggregated to $18,000. The gross value of services performed by them, determined by reference to equivalent wages available in that area for similar services, amounted to $200,000. The university believes the contributed services enhance its assets.

4. At June 30, 20X1, Global’s unrestricted net asset balance was
a. $7,500,000.
b. $3,150,000.
c. $3,000,000.
d. $2,850,000.

5. For the year ended June 30, 20X1, what amount should be included in Global’s revenue for the unrestricted gifts and restricted grants?
a. $550,000.
b. $660,000.
c. $770,000.
d. $880,000.

6. For the year ended June 30, 20X1, what amount should Global record as contribution revenue for the volunteers’ services?
a. $218,000.
b. $200,000.
c. $18,000.
d. $0.

View Solution:

Sale on SolutionInn
  • CreatedMay 23, 2014
  • Files Included
Post your question