The following events affected the New Athens University Loan Fund:
1. $300,000 is received from a donor to establish a student loan fund. Loans will carry a 6% annual interest rate.
2. The Loan Fund loaned the $300,000 to students. Five percent of the loans are estimated to be uncollectible.
3. Loans of $50,000 were repaid with $3,000 of interest.
4. A $1,000 student loan was written off as uncollectible.
Required:
Prepare the journal entries necessary to record these transactions.

Question

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The Answer of The following events affected the New Athens University Loan Fund:
1. $300,000 is received from a donor to establish a student loan fund. Loans will carry a 6% annual interest rate.
2. The Loan Fund loaned the $300,000 to students. Five percent of the loans are estimated to be uncollectible.
3. Loans of $50,000 were repaid with $3,000 of interest.
4. A $1,000 student loan was written off as uncollectible.
Required:
Prepare the journal entries necessary to record these transactions.

The Following Events Affected the New Athens University Loan Fund