Below is a set of transactions that are independent of each other:
1. A university receives a collection of ancient Roman history books from a donor.
2. A school receives a contribution to buy land and the land is bought in the same period.
3. A hospital receives a contribution to buy a building.
4. Volunteers contribute about 300 hours per year to cook meals for the elderly.
5. An estate of a retired professor makes a $5-million endowment contribution to the professor's university.
Required
How should the above transactions be accounted for? Answer the question above assuming:
(a) The organization uses the deferral method of accounting for contributions.
(b) The organization uses the restricted fund method of accounting for contributions.