Exercise 3 (LO 1, 2, 3, 4)  Private  universities,  operating  activities.  Record  the following operating activities:

1.    Student fees of $600,000 were assessed, of which $575,000 has been collected and $4,000 is estimated to be uncollectible.

2.    The bookstore operates in rented space and is run on a break-even basis. Revenues totaled

$100,000, of which 80% was collected to date. Salaries of $35,000 and rent of $10,000 are paid. Other operating expenses amount to $60,000, of which $15,000 has not been paid.

3.    A mandatory transfer of $75,000 was made for a payment due on the gymnasium building mortgage.

4.    The Student Aid Committee report showed the following:

 

 

Cash scholarships issued. . . . . . . . . . . . . . . .                     $25,000

Remission of tuition . . . . . . . . . . . . . . . . . . . .                 10,000

 

 

5.    A check for $10,000 and a pledge for $4,500 are received from the local medical society to cover part of the cost of research on drug effects, one of the university’s educational pro- grams. The educational programs will be conducted and paid for in the next fiscal period.

6.    The endowment fund received a check for $12,000 of interest on investments. The pre- mium amortization on the investment is $240. The unrestricted current fund is the recipient of the income.