Southeastern College began the year with endowment investments of $1,310,000 and $790,000 of restricted cash designated by a donor for capital additions. During the year an additional $510,000 donation was received for capital additions. These funds, together with those contributed in the prior year, were used to purchase 150 acres of land adjacent to the university.
An alum contributed $290,000 to the permanent endowment and pledged to provide an additional $510,000 early next year. The cash was immediately invested.
By terms of the endowment agreement, interest and dividends received on the investments are restricted for scholarships. Gains or losses from changes in the fair value of the investments, however, are not distributed but remain in the endowment. During the year, $59,000 of interest and dividends were received on endowment investments.
At year-end, the fair value of the investments had increased by $7,900.
Required:
Prepare journal entries to record the above transactions assuming:
a. Southeastern College is a public university.
the account titles options for public are: no journal entry required, capital assets, endowment investments, non operating- additions to permanent endowment, non-operating- capital grants and gifts, nonoperating- investment income, restricted cash
there should be six entries
b. Southeastern College is a private university.
the account titles options for private are: no journal entry, contribution revenue- permanetly restricted, contribution revenue- temp restricted, endowment investments, investment income- permanently restricted, investment income- temp restricted, land buildings and equipment, pledges receivables, reclassification from temp restricted net assets, reclassification to unrestricted net asset, restricted cash
there should be 7 entries