Prepare in General Journal Form the Entries Required for Each

question 28

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.
1.A generous alumnus donated $300,000 that can only be used for research on diabetes.The full $300,000 was received in FY 2017.
2.During FY 2017,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 FY 2017,the parking garage (see item 3 above)was partially completed at a total cash expenditure of $1,800,000.
5.During 2017,interest was paid in the amount of $120,000 on the long-term bonds issued for the parking garage project (see item 3 above).