Exercise 4 (LO 1, 2, 3, 4) Private universities, loans. Record the following events that affect the loan activities of Private University: 1. An alumnus donates $420,000 to establish the student loan fund. Students are charged a 5% annual interest rate. 2. Loans of $380,000 are made to students. 3. The remaining $40,000 is deposited in the university credit union, which pays a current interest rate of 7%. 4. Loans of $20,000 are repaid, plus $800 of interest. 5. Interest of $1,400 is received from the university credit union. 6. A student who had borrowed $1,000 was in a serious automobile accident and withdrew from school. The university wrote off the loan as uncollectible.