College Accounting - Recording Transactions

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Week 2: Case: Recording Transactions College Accounting Yvette Pennant Ottawa University Online Professor Forbe March 26, 2014 Scenario 1: Ottawa University requires students to pay tuition each term before classes begin. Generally, students who have not paid their tuition at registration are not allowed to attend classes. What journal entry do you think Ottawa would use to record the receipt of the students' tuition payments? Accounts Receivable Describe the nature of each account in the entry. Payments are being received from the students and they are being put in an account receivable because they are payments made to the schools account. What accounting principle or concept is particularly important in this case? What adjusting entry, if any, will be needed? If the check bounces it will create a negative and cause the account to be out of balance. You will have to go back into accounts receivable and put it as a debit. Scenario 2: Ottawa University contracts with a local lawn care service to maintain their grounds. The lawn care company requires them to pre-pay 6 months of service up front. What journal entry do you think Ottawa would use to record the payment to this lawn care service? This would be a Notes Payable entry. Describe the nature and timing of each account in the entry. In the Accounts payable journal this was debit for a 6 month payment. This is also according to how Ottawa treats prepayments as well. In the balance sheet these payments are recorded every month as a monthly payment. What adjusting entry, if any, will be needed? Do not see a need for adjusting entry. Scenario 3: Ottawa University ordered new furniture for the student dorm. Assuming they don't have to pay for the furniture until it is received, what is the journal entry to record this transaction when they place the order? It would be

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