The following events occurred as part of operations in Hard Knocks (private) University:
a.
To construct a new computer center, the University floated at par a $10,000,000 10% serial bond issued on January 1, paying interest December 31 and June 30.
b.
$100,000 for computer equipment was donated by a wealthy alumnus.
c.
Payments for construction to date total $5,000,000.
d.
Interest payments are made on June 30th.
e.
Construction of the center is completed at an additional cost of $7,000,000 and it is paid in full.
f. The first serial bond of $2,000,000 is paid.

g. A building valued at $100,000 is received as a gift on the condition the university assumes the $50,000 mortgage and uses the building for classroom purposes only. The University elects to "release" the restriction over the useful life of the building.

h. Depreciation on the building totaled $10,000.
Required:
Prepare journal entries for the above events.

Question

The following events occurred as part of operations in Hard Knocks (private) University:
a.
To construct a new computer center, the University floated at par a $10,000,000 10% serial bond issued on January 1, paying interest December 31 and June 30.
b.
$100,000 for computer equipment was donated by a wealthy alumnus.
c.
Payments for construction to date total $5,000,000.
d.
Interest payments are made on June 30th.
e.
Construction of the center is completed at an additional cost of $7,000,000 and it is paid in full.
f. The first serial bond of $2,000,000 is paid.
 
g. A building valued at $100,000 is received as a gift on the condition the university assumes the $50,000 mortgage and uses the building for classroom purposes only. The University elects to "release" the restriction over the useful life of the building.
 
h. Depreciation on the building totaled $10,000.
Required:
Prepare journal entries for the above events.

Quizplus · Accepted Answer

The Answer of The following events occurred as part of operations in Hard Knocks (private) University:
a.
To construct a new computer center, the University floated at par a $10,000,000 10% serial bond issued on January 1, paying interest December 31 and June 30.
b.
$100,000 for computer equipment was donated by a wealthy alumnus.
c.
Payments for construction to date total $5,000,000.
d.
Interest payments are made on June 30th.
e.
Construction of the center is completed at an additional cost of $7,000,000 and it is paid in full.
f. The first serial bond of $2,000,000 is paid.
 
g. A building valued at $100,000 is received as a gift on the condition the university assumes the $50,000 mortgage and uses the building for classroom purposes only. The University elects to "release" the restriction over the useful life of the building.
 
h. Depreciation on the building totaled $10,000.
Required:
Prepare journal entries for the above events.

The Following Events Occurred as Part of Operations in Hard