The following selected transactions affecting the Annuity and Life Income Funds of Tremper State University (public) occurred during the current fiscal year.
a.
Upon his death, John Sooner, a local businessman, donates a portfolio of stock with a cost basis of $100,000 and a market value of $125,000. John's wife is to receive an annuity of $8,000 per year for life. Her life expectancy is ten years. An estimated rate of return of 8% yields a present value of $53,681 for the annuity.
b.
Dividends of $7,500 are received from Life Income Fund investments.
c.
Annuity fund investments with a book value of $6,000 are sold for $6,500.
d.
The beneficiary of the life income investments described in part (b) are paid.
e.
The first annuity payment to John Sooner's wife is made from part (a).
Required:
Make the journal entries necessary to record the transactions.

Question

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The Answer of The following selected transactions affecting the Annuity and Life Income Funds of Tremper State University (public) occurred during the current fiscal year.
a.
Upon his death, John Sooner, a local businessman, donates a portfolio of stock with a cost basis of $100,000 and a market value of $125,000. John's wife is to receive an annuity of $8,000 per year for life. Her life expectancy is ten years. An estimated rate of return of 8% yields a present value of $53,681 for the annuity.
b.
Dividends of $7,500 are received from Life Income Fund investments.
c.
Annuity fund investments with a book value of $6,000 are sold for $6,500.
d.
The beneficiary of the life income investments described in part (b) are paid.
e.
The first annuity payment to John Sooner's wife is made from part (a).
Required:
Make the journal entries necessary to record the transactions.

The Following Selected Transactions Affecting the Annuity and Life Income