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Chapter 21:accounting For Not-for-Profit Organizations
Chapter 21:accounting For Not-for-Profit Organizations
for-Profit Organizations
by Jeanne M. David, Ph.D., Univ. of Detroit Mercy
to accompany
Advanced Accounting, 10th edition
by Floyd A. Beams, Robin P. Clement,
Joseph H. Anthony, and Suzanne Lowensohn
Follow GASB
Follow FASB
Scholarships
• From outside sources: collect the account
receivable from the donor
• Awarded by the college itself: reduce
accounts receivable and record "Expenses –
Educational and general – student aid"
© Pearson Education, Inc. publishing as Prentice Hall 21-43
College Expenses
Expenses are only in the unrestricted net assets
Classify by function:
– Instruction expense
– Research expense
– Public service expense
– Academic support
– Student services
– Institutional support
– Operation and maintenance of plant
– Student aid
© Pearson Education, Inc. publishing as Prentice Hall 21-44
Tuition Revenues
Accounts receivable 1,000
Unrestricted revenues - tuition and fees 1,000
Tuition reduction: unrestricted - student aid 50
Accounts receivable 50
Expenses - educational and general -
institutional support 30
Allowance for uncollectibles 30
• Tuition is recorded at gross amount
• Tuition waivers are contra-revenues
• Bad debts are recorded as for businesses
• Grouped with institutional support expenses