COLLEGES AND UNIVERSITIES

y y y OBJECTIVE: to provide educational services including teaching and research may be public , profit-oriented , and private nonprofit institutions used accrual method in accounting

CURRENT FUNDS
used to account for resources that are expendable in carrying out day-to-day operations a. Unrestricted Current Fund used to account for the resourcces that have no restrictions as to the operating purposes for which they may be expended b. Restricted Current Fund used to account for resources to be expended for operating purposes that are specified by an outside donor or guarantor Mandatory Transfers arise from binding legal agreements or agreements with donors Non Mandatory Transfers transfer made at the discretion of the governing board Board designated funds fund transfer

JOURNAL ENTRIES
UNRESTRICTED CURRENT FUND
FUNDS CONSIDERED UNCOLLECTIBLE Expenses Institutional Support Allowance for Uncollectible Accounts CASH CONTRIBUTIONS ARE GIVEN WITHOUT RESTRICTION Cash Revenues Unrestricted Contribution CLOSING ENTRIES PREPARED FOR UNRESTRICTED NET ASSETS Revenues Expenses Unrestricted Net Assets

CURRENT RESTRICTED FUND

CASH CONTRIBUTIONS ARE GIVEN WITH RESTRICTION Cash Revenues Temporary Restricted Contributions RECLASSIFICATION OF TEMPORARY RESTRICTED REVENUES WHEN DONOR SPECIFICATIONS ARE MET Reclassification Out- Temporary Restricted Satisfaction of Program Restriction Reclassification In- Unrestricted Satisfaction of Program Restriction RECEIVED GOVERNMENT GRANTS Cash Government Grants Refundable CLOSING ENTRIES PREPARED FOR TEMPORARY RESTRICTED NET ASSETS Revenue Temporary Restricted Contributions Reclassification Out- Temporary Restricted Satisfaction of Program Restriction Temporary Restricted Net Assets

http://www.coa.gov.ph/2005_AAR/NGAs/SUC05_nga.asp http://www.scubesscorp.com/japionline.org/JAPI_Annual_Report_2006-07.pdf 1. Is used to account for resources to be expended for operating purposes that are specified

by an outside donor or guarantor - Restricted Current Fund

2. Non Mandatory Transfers arise from binding legal agreements or agreements with

donors - FALSE 3. Mandatory Transfers transfer made at the discretion of the governing board -FALSE