Consider the Following Events Affecting Private University

question 43

Essay

Consider the following events affecting Private University:
a.A $2,000,000, 10% serial bond issue, paying interest semiannually, was sold at face value on an interest payment date. Proceeds of the bond issue are to be used to add a wing to the library.
b.A lot valued at $30,000 was donated by a former librarian to permit building of the proposed library wing. No permanent restrictions were stipulated by the donor.
c.The State Building Board approved the plans submitted by the architect, who was paid $20,000. A contract for $1,900,000 was signed for construction of the library wing.
d.The bond interest was paid.
e.At year end, approximately two-thirds of the construction was completed. A payment of $1,200,000 was made to the contractor. f. Tuckpointing and other repairs to university buildings amounting to $35,000 were paid from resources previously provided specifically for that purpose by a retired faculty member. g. The library wing was completed. The remaining contract price is paid. h. Payments of the second six months' interest on bonds ($100,000) and the first bond serial ($200,000) were made. i. A donation made last year by a public accounting firm was expanded to acquire a specified collection of books on accounting, dating back to the 16th and 17th centuries, at a cost of $85,000. Required:Prepare journal entries to record the events.

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Definitions:

Abbreviation

A condensed version of a word or phrase, utilized to conserve space or prevent redundancy.

Equivalent Measure

A unit of measurement that corresponds to equivalent amounts in different measurement systems.

Milliliters

A metric unit of volume equal to one thousandth of a liter, commonly used to measure liquids in medical, laboratory, and cooking contexts.

Milliliters

A measurement of capacity in the metric system, equivalent to 0.001 liters, frequently utilized for quantifying liquid substances.