Northern University Received $2,000,000 from Donors for Endowments B $\begin{array}{ll}\text {Restricted Cash and Cash Equivalents}&2,000,000 \\\text {Permanent Endowment Fund}&&2,000,000\\\end{array}$

Northern University received $2,000,000 from donors for endowments. The principal may not be expended. One half of the income is to be used for research and the other half is to be used for scholarships.
What is the journal entry to record this event?
A.
$\begin{array}{ll}\text { Restricted Cash and Cash Equivalents } & 2,000,000 \\\text { Research Endowment } && 1,000,000 \\\text { Scholarship Endowment } && 1,000,000\end{array}$
B.
$\begin{array}{ll}\text {Restricted Cash and Cash Equivalents}&2,000,000 \\\text {Permanent Endowment Fund}&&2,000,000\\\end{array}$

C.
$\begin{array}{lll}\text { Restricted Cash and Cash Equivalents}&2,000,000 \\\text { Additions to Permanent Endowments}\\\text { Income Restricted for Research}&& 1,000,000 \\\text { Additions to Permanent Endowments}\\\text { Income Restricted for Scholarships}&& 1,000,000 \\\end{array}$

D.
$\begin{array}{lll}\text { Cash - Restricted for Research } & 1,000,000 & \\\text { Cash - Restricted for Scholarships } & 1,000,000 & \\\quad \text { Research Endowment } & & 1,000,000 \\\quad\text { Scholarship Endowment } & & 1,000,000\end{array}$

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