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  3. 3. mojito university is a private not-for-profit u

3. Mojito University is a private not-for-profit university that starts the current year with $900,000...

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Accounting

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3. Mojito University is a private not-for-profit university that starts the current year with $900,000 in net assets: $500,000 without donor restrictions and $400,000 with donor restrictions. The following transactions occur during the year. i. Charged students $1,000,000 in tuition. ii. Received a donation of investments that was worth $250,000 at the time of the gift. According to the gift's terms, the university must hold the investments forever but can spend the dividends for any purpose. iii. Received a cash donation of $300,000 that must be used for laboratory equipment. iv. Paid salary expenses of $310,000, with $100,000 coming from donor restricted funds. v. Spent $120,000 of the money in iii. on laboratory equipment. vi. Received dividends of $7,500 on the investments in ii. vii. Received an unconditional promise of $12,000, which the school fully expects to collect in three years although its present value is only $8,000. The school assumes that the money cannot be used until the school receives it. Required: a. Prepare journal entries for each of the transactions. b. Determine the end-of-year balances for Net Assets without Donor Restrictions and Net Assets with Donor Restrictions

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