AllenUniversity (EAU) is a private university following FASB standards for reporting. The following transactions took place during the fiscal year ended June 30, 2021.

1. EAU had received $600,000 in tuition in June 2021 for the summer session that runs from June 16 to August 14, 2021 and had deferred $450,000 (75%) at June 30, 2021.
2. EAU received cash tuition of $3,560,000; unrestricted contributions of $380,000; contributions permanently restricted by donor agreement for the endowment of $825,000; unrestricted interest income on endowments of $250,000; and auxiliary enterprise revenue of $2,500,000.
3. Contributions for student scholarships were received in the amount of $630,000. $460,000 was awarded to students during the year. Students receiving those scholarships are required to work 10 hours a week (institutional support).
4. Expenses amounted to $1,600,000 for instruction, $900,000 for research, $500,000 for public services, $1,900,000 for Auxiliary Enterprise services, $300,000 for Student Services expense and $790,000 for institutional support. Included in these amounts is $460,000 of depreciation. All other expenses ($5,530,000) were paid in cash. Plant assets are classified as unrestricted.
5. EAU received $580,000 in tuition in mid-June 2021 for the summer session ending in mid-August 2021.
6. At year-end, endowment investments were determined to have a fair value of $50,000 in excess of their recorded amounts. No restrictions apply to this income.

Required:

Prepare journal entries to record these events including closing entries.

Answer rating: 100% (QA)

a recording of deferred revenue Date Account Dr Cr Deferred revenues 450000 unrestricted revenues 45... View the full answer