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The Following Events Affected the New Athens University Loan Fund

question 19

Essay

The following events affected the New Athens University Loan Fund:
1. $300,000 is received from a donor to establish a student loan fund. Loans will carry a 6% annual interest rate.
2. The Loan Fund loaned the $300,000 to students. Five percent of the loans are estimated to be uncollectible.
3. Loans of $50,000 were repaid with $3,000 of interest.
4. A $1,000 student loan was written off as uncollectible.
Required:
Prepare the journal entries necessary to record these transactions.


Definitions:

Incentive Pay Systems

Compensation methods designed to motivate employees by tying a portion of their earnings to specific performance metrics.

TQM

Total Quality Management; a business management strategy aimed at embedding awareness of quality in all organizational processes.

Survey Feedback

A method of organizational development involving the collection of employee opinions and attitudes, followed by sharing the results with them to initiate change.

Interpersonal Processes

The exchanges and interactions that occur between individuals in a social or professional context.

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