Problem: Southern State University has chosen to report as a public university, reporting as a special-purpose entity engaged only in business-type activities. Deferred revenues were reported as of July 1, 2004, in the amount of $5,500,000. Record the following transactions related to revenue recognition for the year ending June 30, 2005. Include in the account titles the proper revenue classification (operating revenues, nonoperating revenues, etc.).
1. Deferred revenues related to unearned revenues for the summer session, which ended in August 2004.
2. During the fiscal year ending June 30, 2005, student tuition and fees were assessed in the amount of $56,000,000. Of that amount, $49,000,000 was collected in cash. Also, of that amount, $4,000,000 pertained to that portion of the 2005 summer session that took place after June 30, 2005.
3. Student scholarships, for which no services were required, amounted to $1,700,000. Students applied these scholarships to their tuition bills at the beginning of the fall and spring semesters.
4. Student scholarships and fellowships, for which services were required, such as graduate assistantships, amounted to $2,500,000. These students also applied their scholarship and fellowship awards to their tuition bills at the beginning of each semester.
5. Auxiliary enterprise revenues amounted to $4,700,000.
6. The state appropriation for operations amounted to $43,000,000.
7. The state appropriation for capital outlay amounted to $12,000,000.
8. Gifts for endowment purposes amounted to $1,100,000. Gifts for unrestricted purposes amounted to $2,000,000. Interest income, all unrestricted, amounted to $540,000.