The following events involve a loan fund of East York public University:

a.To establish the Hanson Student Loan Fund, two brothers donated $40,000 cash and securities that cost $80,000.Market value of the securities at time of donation was $160,000.

b.The securities were later sold for $189,000.The original agreement stipulated that any gain on the sale or income received from the securities be added to the loan fund.

c.Loans of $140,000 were made to students at 6% annual interest.

d.The board of trustees agreed that loans to students in the amounts of $9,000 were uncollectible.At year end, the board took action to write off the uncollectible loans outstanding of $9,000.

e.Collections on Hanson loans amounted to $13,000 plus $450 in interest.
Required:

Prepare journal entries to record the above events.

Question

The following events involve a loan fund of East York public University:
​
a.To establish the Hanson Student Loan Fund, two brothers donated $40,000 cash and securities that cost $80,000.Market value of the securities at time of donation was $160,000.​
​
b.The securities were later sold for $189,000.The original agreement stipulated that any gain on the sale or income received from the securities be added to the loan fund.​
​
c.Loans of $140,000 were made to students at 6% annual interest.​
​
d.The board of trustees agreed that loans to students in the amounts of $9,000 were uncollectible.At year end, the board took action to write off the uncollectible loans outstanding of $9,000.​
​
e.Collections on Hanson loans amounted to $13,000 plus $450 in interest.​
Required:
​
Prepare journal entries to record the above events.

Quizplus · Accepted Answer

The Answer of The following events involve a loan fund of East York public University:
​
a.To establish the Hanson Student Loan Fund, two brothers donated $40,000 cash and securities that cost $80,000.Market value of the securities at time of donation was $160,000.​
​
b.The securities were later sold for $189,000.The original agreement stipulated that any gain on the sale or income received from the securities be added to the loan fund.​
​
c.Loans of $140,000 were made to students at 6% annual interest.​
​
d.The board of trustees agreed that loans to students in the amounts of $9,000 were uncollectible.At year end, the board took action to write off the uncollectible loans outstanding of $9,000.​
​
e.Collections on Hanson loans amounted to $13,000 plus $450 in interest.​
Required:
​
Prepare journal entries to record the above events.

The Following Events Involve a Loan Fund of East York