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Advanced Accounting 11th Edition by Paul Fischer,William Tayler, Rita Cheng
Edition 11ISBN: 978-0538480284Advanced Accounting 11th Edition by Paul Fischer,William Tayler, Rita Cheng
Edition 11ISBN: 978-0538480284 Exercise 5
Private universities, loans. Record the following events that affect the loan activities of Private University:
1. An alumnus donates $420,000 to establish the student loan fund. Students are charged a 5% annual interest rate.
2. Loans of $380,000 are made to students.
3. The remaining $40,000 is deposited in the university credit union, which pays a current interest rate of 7%.
4. Loans of $20,000 are repaid, plus $800 of interest.
5. Interest of $1,400 is received from the university credit union.
6. A student who had borrowed $1,000 was in a serious automobile accident and withdrew from school. The university wrote off the loan as uncollectible.
1. An alumnus donates $420,000 to establish the student loan fund. Students are charged a 5% annual interest rate.
2. Loans of $380,000 are made to students.
3. The remaining $40,000 is deposited in the university credit union, which pays a current interest rate of 7%.
4. Loans of $20,000 are repaid, plus $800 of interest.
5. Interest of $1,400 is received from the university credit union.
6. A student who had borrowed $1,000 was in a serious automobile accident and withdrew from school. The university wrote off the loan as uncollectible.
Explanation
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(b) 
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Advanced Accounting 11th Edition by Paul Fischer,William Tayler, Rita Cheng
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