The following problem is an example of typical transactions thata not-for-profit college or university might have.  Usethe information in the FASB Accounting Standards Codification tohelp you answer the requirements of the problem.

Beatty College, a not-for-profit college, engaged in thefollowing transactions during its fiscal year ending June 30,2015.         

Requirements:  Prepare appropriate journal entries,indicating the types of funds (by restrictiveness) in which theywould be recorded.

Transactions:

               1.In May 2015 Beatty College collected $100,000,000 in studenttuition.  Of thisamount              $10,000,000was applicable to the summer semester, which ran from June1 toAugust 30,2015,              and$1,000,000 was applicable to the fall semester that beganSeptember, 2015.

               2.Beatty College received a contribution of $1,000,000 in stocks andbonds to establishan       endowed chair inaccounting.  Income from the chair endowment must be usedto supplement        thesalary of a professor accounting.

               3.During 2015, the accounting chair endowment earned interest anddividends of $50,000 all of    which was usedto supplement the salary of the chair of the accountingdepartment.  (Note:        a.record the investment earnings and b. record cash paid for thechair’s salary.)  Use thesame      $50,000 for bothentries.

               4.The fair value of the investment of the accounting chair endowmentdeclined by $80,000.

               5.Using funds restricted for this purpose, the college purchased$150,000 of equipment forthe          collegeathletics department.

               6.Beatty College recorded depreciation of $30,000.

               7.The annual alumni campaign yielded $1,800,000 inpledges.  The college estimated that 2% would beuncollectible.  During the year, Beatty college collected$1,500,000 on the pledges.