Dogwood State University is a government university that reports as a special government engaged only in business-type activities. Listed below are selected transactions that affect its annuity gifts. All amounts are in thousands of dollars.
Transactions:
1. At the beginning of the year, the college receives cash of $200 with a stipulation that the donor be paid $25 a year for 10 years. The present value of the payment to the donor is $175.
2. Investments in the amount of $195 are purchased.
3. Payments of $25 are made to the donor at year end.
4. Investment income of $13 is received during the year.
5. The present value of the annuity payable to the donor at year end was $162.
Requirement: Prepare the necessary journal entries to record these transactions.

Question

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The Answer of Dogwood State University is a government university that reports as a special government engaged only in business-type activities. Listed below are selected transactions that affect its annuity gifts. All amounts are in thousands of dollars.
Transactions:
1. At the beginning of the year, the college receives cash of $200 with a stipulation that the donor be paid $25 a year for 10 years. The present value of the payment to the donor is $175.
2. Investments in the amount of $195 are purchased.
3. Payments of $25 are made to the donor at year end.
4. Investment income of $13 is received during the year.
5. The present value of the annuity payable to the donor at year end was $162.
Requirement: Prepare the necessary journal entries to record these transactions.

Dogwood State University Is a Government University That Reports as a Special