Eastern University had the following transactions at the beginning of its academic year:
1. Student tuition and fees were billed in the amount of $7,000,000. Of that amount, $4,500,000 was collected in cash.
2. Pell Grants in the amount of $2,000,000 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 $450,000. 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?