The Following Information Is Available About the Operations for a Private,not-For-Profit

question 24

Essay

The following information is available about the operations for a private,not-for-profit university.
1.The university sold $20,000,000 of 5% bonds to finance the construction of a new building for the business school.The bonds were sold on January 1 and pay interest on December 31 of each year.The bonds were sold at par and mature in 20 years.
2.The university received $7,500,000 cash in alumni and corporate donations for the new business school building.
3.The building was constructed at a total cost of $22,000,000 and the contractor was paid in full.
4.Interest was paid on the bonds.
5.Depreciation on the new building the first year was $275,000.
Required:
Prepare the appropriate journal entries for the university for these transactions.

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Definitions:

Convergence Theory

A theory suggesting that as societies develop, they begin to resemble each other more by adopting similar technologies and social structures.

Social Change

The significant alteration of social structures and cultural patterns over time, impacting institutions, behaviors, and societal norms.

New Social Movement Theory

An analytical framework focusing on the diverse social movements that emerged from the 1960s onwards, emphasizing identity, agency, and culture.

Social Movements

Collections of people who are organized to bring about or resist social change.