Consider the following transactions for the University of Northland (private):

a.On January 1st a gift of $100,000 was received from an alumnus.She requested one half be used for student loans and the other as a pure endowment contribution.

b.Loans totaling $25,000 are made to students.Collections from other loans made to students total $30,000 plus $3,000 interest.

c.During the year, investments of $20,000 were sold for $30,000.Any gain is restricted for improvements in classroom instruction.

d.During the year, interest charges of $5,000 were earned and collected on late student fee payments.

e.A student loan of $500 is deemed uncollectible.f.During the year, operating expenses of $150,000 were recorded.At the end of the year, $25,000 remains unpaid.

Question

Consider the following transactions for the University of Northland (private):
​
a.On January 1st a gift of $100,000 was received from an alumnus.She requested one half be used for student loans and the other as a pure endowment contribution.​
​
b.Loans totaling $25,000 are made to students.Collections from other loans made to students total $30,000 plus $3,000 interest.​
​
c.During the year, investments of $20,000 were sold for $30,000.Any gain is restricted for improvements in classroom instruction.​
​
d.During the year, interest charges of $5,000 were earned and collected on late student fee payments.​
​
e.A student loan of $500 is deemed uncollectible.​f.During the year, operating expenses of $150,000 were recorded.At the end of the year, $25,000 remains unpaid.​

Quizplus · Accepted Answer

The Answer of Consider the following transactions for the University of Northland (private):
​
a.On January 1st a gift of $100,000 was received from an alumnus.She requested one half be used for student loans and the other as a pure endowment contribution.​
​
b.Loans totaling $25,000 are made to students.Collections from other loans made to students total $30,000 plus $3,000 interest.​
​
c.During the year, investments of $20,000 were sold for $30,000.Any gain is restricted for improvements in classroom instruction.​
​
d.During the year, interest charges of $5,000 were earned and collected on late student fee payments.​
​
e.A student loan of $500 is deemed uncollectible.​f.During the year, operating expenses of $150,000 were recorded.At the end of the year, $25,000 remains unpaid.​

Consider the Following Transactions for the University of Northland (Private)