The Following Events Occurred as Part of Operations in Hard

question 2

Essay

The following events occurred as part of operations in Hard Knocks (private) University:
a.
To construct a new computer center, the University floated at par a $10,000,000 10% serial bond issued on January 1, paying interest December 31 and June 30.
b.
$100,000 for computer equipment was donated by a wealthy alumnus.
c.
Payments for construction to date total $5,000,000.
d.
Interest payments are made on June 30th.
e.
Construction of the center is completed at an additional cost of $7,000,000 and it is paid in full.
f. The first serial bond of $2,000,000 is paid.

g. A building valued at $100,000 is received as a gift on the condition the university assumes the $50,000 mortgage and uses the building for classroom purposes only. The University elects to "release" the restriction over the useful life of the building.

h. Depreciation on the building totaled $10,000.
Required:
Prepare journal entries for the above events.

Appreciate the role of brand names and packaging as forms of product differentiation in monopolistic competition.

Understand the implications of monopolistic competition on societal welfare, including deadweight loss and the trade-off between product variety and productive efficiency.

Analyze the impact of industry entry and exit on the long-run economic profitability in monopolistically competitive markets.

Understand the impact of market structure on firm behavior and economic outcomes.

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Definitions:

Functional Residual Capacity

The volume of air remaining in the lungs after a normal, passive exhalation, which is crucial for continuous gas exchange in the lungs.

Residual Volume

The volume of air remaining in the lungs after a forceful exhalation, ensuring that the lungs do not collapse.

Total Lung Capacity

The maximum amount of air the lungs can hold, comprised of tidal volume and all reserve volumes.

Spirometer

An instrument used to measure the volume of air inhaled and exhaled by the lungs.