Dunning College, a private college in northern Idaho, receives the following donations:
1. A parent of a current accounting student contributes $1,000,000, with the stipulation that the donation be used to fund a new building for the business school. The college does not know whether it can accumulate enough additional resources to go ahead with the project.
2. An accounting alumnus contributes $100,000 to the accounting department. The alumnus stipulates that the principal of the contribution remain intact, and any investment income be used to fund a speaker series on current accounting issues. The college invests the $100,000 in securities, and earns income of $5,000. The $5,000 is used to pay transportation costs and speaker fees.
3. A retired recruiter from a local CPA firm notifies the college that her will states that $2,000,000 of her estate be paid to the accounting department of the college.
4. An alumnus promises to contribute $100,000 if the college can raise $100,000 from other sources. The college raises the $100,000 and the alumnus contributes the additional $100,000.
5. A student donates a car valued at $5,000, specifying that the car be used to transport disabled students from their dorms to class.
6. The car in item 5. depreciates by $1,000.
7. Cash contributions to the college total $5,000,000. The college's Board sets aside $300,000 for repairs to the administration building.
Required
For each of the above items, prepare the appropriate journal entry or entries. If the item affects net assets, specify which category of net assets is affected.