The Following Grants and Contracts Were Awarded to Northern University

The following grants and contracts were awarded to Northern University: Federal grants and contracts: $5,000,000
State grants and contracts: $2,125,000
All the money was collected by the University when the awards were made.
Restrictions on the money is as follows: $\begin{array} { l l l } \text { Federal: } & \text { Research } & 3,000,000 \\& \text { Scholarships } & 2,000,000 \\\text { State: } & \text { Research } & 1,125,000 \\& \text { Scholarships } & 1,000,000\end{array}$ What is the journal entry to record this event?
A. $\begin{array}{ll}\text { Cash and Cash Equivalents } & 7,125,000 \\\text { Operating Revenues - Research } && 4,125,000 \\\text { Operating Revenues - Scholarships \& Fellowships } && 3,000,000\end{array}$

B. $\begin{array}{lrr}\text { Cash and Cash Equivalents } & 5,000,000 & \\\text { Restricted Cash and Cash Equivalents } & 2,125,000 & \\\text { Operating Revenues - Research } & & 4,125,000 \\\text { Operating Revenues - Scholarships \& Fellowships } & &3,000,000\end{array}$

C.
$\begin{array}{ll}\text { Restricted Cash and Cash Equivalents}&7,125,000 \\\text { Operating Revenues - Restricted - Federal Grants}&&5,000,000\\\text { Operating Revenues - Restricted - State Grants}&& 3,000,000\\\end{array}$

D.
$\begin{array}{ll}\text { Restricted Cash and Cash Equivalents} & 7,125,000\\\text { Operating Revenues - Restricted - Federal Grants}\\\text { And Contracts - Research }& & 3,000,000 \\\text { Operating Revenues - Restricted - Federal Grants } & \\\text { And Contracts - Scholarships and Fellowships } && 2,000,000 \\\text { Operating Revenues - Restricted - State Grants } & \\\text { And Contracts - Research } && 1,125,000 \\\text { Operating Revenues - Restricted - Federal Grants } & \\\text { And Contracts - Scholarships and Fellowships } && 1,000,000\end{array}$

A) Choice A
B) Choice B
C) Choice C
D) Choice D