Prepare in General Journal Form the Entries Required for Each

question 40

Essay

Prepare in general journal form the entries required for each of the following selected transactions of Northern University, a state-funded public institution engaged only in business-type activities. Some of these transactions are related and some are not. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 
1. A generous alumnus donated $300,000 that can only be used for research on diabetes. The full $300,000 was received in the current fiscal year.
2. During the current fiscal year, expenses of $150,000 were made in cash for diabetes research (see item 1 above).
3. $2,000,000 in long-term bonds was issued to construct a new parking garage on campus.
4. During the current fiscal year, the parking garage (see item 3 above) was partially completed at a total cash expenditure of $1,800,000.
5. During the current fiscal year, interest was paid in the amount of $120,000 on the long-term bonds issued for the parking garage project (see item 3 above).

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