A partial statement of financial position of Century University is shown below

P19-3: Various Funds-University

A partial statement of financial position of Century University is shown below.

Century University
Partial Statement of Financial Position
June 30, 2007
Assets
Current Funds
Unrestricted
Cash $210,000
Accounts Receivable (less allowance for doubtful accounts, $9,000) 341,000
State Appropriations Receivable 75,000
Total Unrestricted 626,000
Restricted
Cash 7,000
Investments 60,000
Total Restricted 67,000
Total Current $693,000
Liabilities and Fund Balances
Current Funds
Unrestricted
Accounts Payable $ 45,000
Deferred Revenues 66,000
Fund Balance 515,000
Total Unrestricted 626,000
Restricted
Fund Balance 67,000
Total Restricted 67,000
Total Current $693,000

During the fiscal year ended June 30, 2008, the following transactions occurred:

1. A gift of $100,000 was received from an alumnus on July 7, 2007. One-half of the gift was to be used for the purchase of books for the university’s library and the rest was to be used to establish a scholarship fund per the alumnus’s request. It was also requested that the income generated by the scholarship fund be awarded annually as a scholarship for a qualified disadvantaged student. The board decided that the funds for the new scholarship should be invested in savings certificates on July 20, 2007. These savings certificates were puchased on July 21, 2007.
2. Revenue for the fiscal period from student tuition and fees amounted to $1,900,000. During the fiscal year, $1,686,000 of this amount was collected; $66,000 had been collected in the prior year. The university had also received $158,000 by June 30, 2008, for fees for the session beginning July 1, 2008.
3. During the year ended June 30, 2008, the university collected $349,000 of the outstanding accounts receivable at the beginning of the year. The balance was determined to be uncollectible and was written off against the allowance account. At June 30, 2008, the allowance account was increased by $3,000.
4. Because of late student fee payments, $6,000 in interest charges were earned and collected.
5. The state appropriation was received. Another unrestricted appropriation of $50,000 was made by the state. This had not been paid to the university by the fiscal year-end.
6. An unrestricted gift of $25,000 cash was received from alumni of the university.
7. During the year, investments of $21,000 were sold for $26,000. Investment income amounting to $1,900 was received.
8. Unrestricted operating expenses were recorded at $1,777,000, $59,000 of which remains unpaid.
9. Restricted current funds of $13,000 were spent for authorized purposes during the year.
10. The accounts payable at June 30, 2007, were paid during the year.
11. During the year, $7,000 interest was earned and received on the savings certificates purchased in accordance with the board’s resolution [in item (1)].

Required:
A. Prepare journal entries to record in summary form the transactions above for the year ended June 30, 2008. Each journal entry should be numbered to correspond with the transaction described above. Set up the following headings:
B. Prepare a statement of activities for the year ended June 30, 2008.
C. Prepare a statement of activities for the current funds for the year ended June 30, 2008. Include more details about the revenues and expenses.

Click here for the solution: A partial statement of financial position of Century University is shown below

Becky Knauer recently resigned from her position as controller for Shamalay Automotive, a small, struggling foreign car dealer in Upper Saddle River, New Jersey

Chapter 16 Ethical Issue 16-1 Becky Knauer recently resigned from her position as controller for Shamalay Automotive, a small, struggling foreign car dealer in Upper Saddle River, New Jersey. Becky has just started a new job as controller for Mueller Imports, a much larger dealer for the same car manufacturer. Demand for this particular make of car is exploding, and the manufacturer cannot produce enough to satisfy demand. The manufacturer's regional sales managers are each given a certain number of cars. Each sales manager then decides how to divide the cars among the independently owned dealerships in the region. Because of high demand for these cars, dealerships all want to receive as many cars as they can from the regional sales manager.

Becky's former employer, Shamalay Automotive, receives only about 25 cars a month. Consequently, Shamalay was not very profitable.

Becky is surprised to learn that her new employer, Mueller Imports, receives over 200 cars a month. Becky soon gets another surprise. Every couple of months, a local jeweler bills the dealer $5,000 for “miscellaneous services.” Franz Mueller, the owner of the dealership, personally approves payment of these invoices, noting that each invoice is a “selling expense.” From casual conversations with a salesperson, Becky learns that Mueller frequently gives Rolex watches to the manufacturer's regional sales manager and other sales executives. Before talking to anyone about this, Becky decides to work through her ethical dilemma.

Requirement
Put yourself in Becky's place.
a. What is the ethical issue?
b. What are your options?
c. What are the possible consequences?
d. What should you do?


Click here for the solution: Becky Knauer recently resigned from her position as controller for Shamalay Automotive, a small, struggling foreign car dealer in Upper Saddle River, New Jersey

Assume that a company wants to hire a sales engineer-that is, fill a position where the major emphasis is on technical product knowledge

Assume that a company wants to hire a sales engineer-that is, fill a position where the major emphasis is on technical product knowledge. Should this firm recruit engineers and train them to sell or recruit sales reps and teach then the necessary technical information and abilities?


Click here for the solution: Assume that a company wants to hire a sales engineer-that is, fill a position where the major emphasis is on technical product knowledge