The following events involve a loan fund of East York public University:
a.
To establish the Hanson Student Loan Fund, two brothers donated $40,000 cash and securities that cost $80,000. Market value of the securities at time of donation was $160,000.
b.
The securities were later sold for $189,000. The original agreement stipulated that any gain on the sale or income received from the securities be added to the loan fund.
c.
An appreciative board of trustees transferred $30,000 cash from the Unrestricted Current Fund to the loan fund.
d.
Loans of $140,000 were made to students at 6% annual interest.
e.
The board of trustees agreed that loans to students in the amounts of $9,000 were uncollectible. At year end, the board took action to write off the uncollectible loans outstanding of $9,000.
f. Collections on Hanson loans amounted to $13,000 plus $450 in interest.
Required:
Prepare journal entries to record the above events.

Question

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The Answer of The following events involve a loan fund of East York public University:
a.
To establish the Hanson Student Loan Fund, two brothers donated $40,000 cash and securities that cost $80,000. Market value of the securities at time of donation was $160,000.
b.
The securities were later sold for $189,000. The original agreement stipulated that any gain on the sale or income received from the securities be added to the loan fund.
c.
An appreciative board of trustees transferred $30,000 cash from the Unrestricted Current Fund to the loan fund.
d.
Loans of $140,000 were made to students at 6% annual interest.
e.
The board of trustees agreed that loans to students in the amounts of $9,000 were uncollectible. At year end, the board took action to write off the uncollectible loans outstanding of $9,000.
f. Collections on Hanson loans amounted to $13,000 plus $450 in interest.
Required:
Prepare journal entries to record the above events.

The Following Events Involve a Loan Fund of East York