Consider the Following Transactions for the University of Northland (Private)

question 59

Essay

Consider the following transactions for the University of Northland (private):
a.
On January 1st a gift of $100,000 was received from an alumnus. She requested one half be used for student loans and the other as a pure endowment contribution.
b.
Loans totaling $25,000 are made to students. Collections from other loans made to students total $30,000 plus $3,000 interest.
c.
During the year, investments of $20,000 were sold for $30,000. Any gain is restricted for improvements in classroom instruction.
d.
During the year, interest charges of $5,000 were earned and collected on late student fee payments.
e.
A student loan of $500 is deemed uncollectible.
f. During the year, operating expenses of $150,000 were recorded. At the end of the year, $25,000 remains unpaid.
Required:
Prepare journal entries necessary to record the transactions.

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Definitions:

Isolationism

The desire to avoid foreign entanglements that dominated the U.S. Congress in the 1930s; beginning in 1935, lawmakers passed a series of Neutrality Acts that banned travel on belligerents’ ships and the sale of arms to countries at war.

International Conflicts

Disputes between different countries or nations, which can involve military, economic, or diplomatic disagreements and can escalate to war.

Defense Industries

Industry sectors that produce weapons, military technology, and equipment for the purpose of national defense and security.

Permanent Workers

Employees who are hired on an indefinite basis, often receiving full-time benefits and job security, as opposed to temporary or contract workers.