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.On December 31, the first serial bond of $2,000,000 is paid along with the regular interest payment.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.On December 31, the first serial bond of $2,000,000 is paid along with the regular interest payment.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.On December 31, the first serial bond of $2,000,000 is paid along with the regular interest payment.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