At the beginning of the current year, Pauline Doyle gave Rocky Mountain College $600,000 in cash, with the provision that the cash be invested in income-producing securities. The college is to pay Pauline the income from the investments for her remaining life. Upon her death, remaining resources become available to the college with no restrictions as to use. The college invested the $600,000 in securities earning dividend and interest income of $17,000, received in cash. The securities have a fair value of $601,000 at the end of the year.

Required

Prepare journal entries to record the split-interest agreement during the current year. Investment income is defined as dividend and interest income and unrealized gains and losses.

Description		Debit	Credit
AnswerCashContribution revenue-restrictedContribution revenue-unrestrictedContributions receivableInvestmentsLife income payable		Answer	Answer
AnswerCashContribution revenue-restrictedContribution revenue-unrestrictedContributions receivableInvestmentsLife income payable		Answer	Answer
To record contribution under the life income agreement.
AnswerCashContribution revenue-restrictedContribution revenue-unrestrictedContributions receivableInvestmentsLife income payable		Answer	Answer
AnswerCashContribution revenue-restrictedContribution revenue-unrestrictedContributions receivableInvestmentsLife income payable		Answer	Answer
To record investment.
Cash		Answer	Answer
AnswerCashContribution revenue-restrictedContribution revenue-unrestrictedContributions receivableInvestmentsLife income payable		Answer	Answer
AnswerCashContribution revenue-restrictedContribution revenue-unrestrictedContributions receivableInvestmentsLife income payable		Answer	Answer
To record the year's income andchange in fair value of investments.
AnswerCashContribution revenue-restrictedContribution revenue-unrestrictedContributions receivableInvestmentsLife income payable		Answer	Answer
AnswerCashContribution revenue-restrictedContribution revenue-unrestrictedContributions receivableInvestmentsLife income payable		Answer	Answer
To record income payment to the donor.

Please answer all parts of the question.