Exercise 11-7 Eastern University had the following transactions at the beginning

Question

Exercise 11-7

Eastern University had the following transactions at the beginning of its academic year:

1- Student tuition and fees were billed in the amount of $7,010,000. Of that amount, $4,520,000 was collected in cash.

2- Pell Grants in the amount of $2,002,000 were received by the university.

3- The Pell Grants were applied to student accounts.

Student scholarships, for which no services were required, amounted to $460,000. 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.

Explanation / Answer

Journal Entries :-

a). Eastern University is Public University.

b). Easten university is Private University :-

S. No. Particulars Debit ($) Credit ($) 1. Cash A/c Dr. 4520000 Account Receivable A/c Dr.(Bal. Fig.) 2490000 To Tution Income 7010000 2 Cash A/c Dr. 2002000 To Revenue Grants 2002000 3 Student scholarship A/c Dr. 460000 To Account Receivable A/c 460000 4 Tution Income A/c Dr. 7010000 Grants A/c Dr. 2002000 To Profit and Loss 9012000 5 Profit and loss A/c Dr. 460000 To Scholership A/c 460000

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.