M 19-4 Journal Entries-University La3 The following transactions of Bellville College transpired during 2015. The funds necessary are the Endowment Fund, the Annuity Fund, the Plant Fund-Unexpended, the Plant Fund-Investment in Plant, the Loan Fund, the Unrestricted Current Fund, and the Restricted Current Fund. January 1. A gift of $10,000 was received from Carl Brown. The principal was to be held intact and the income to be used for any purpose designated by the governing board. 2. David Gross donated $20,000. The principal was to be held intact and the income to be used for scholarships for worthy students. 3. Roxanne Norton donated $30,000, of which the principal was to remain intact while the interest was to be used for student loans. All income is to be relent; all losses from loans are to be charged against income. 4. A gift of $205,000 was received from Brian Carr. Semiannual payments of $10,000 are to be made to the donor during his lifetime. On his death the fund is to be used to purchase or construct a students' residence. Mr. Carr has a life expectancy of five years and investments are expected to earn 8% annually. 5. Kathy Jackson donated 1,000 shares of BIM stock, which had a market value of $150 per share on that date. All income received from the shares is to be held intact and the shares cannot be held for more than five years. Once the board sells the shares, all the proceeds are to be used to build a student hospital. 6. The assets of the Brown and Gross funds were consolidated into a pooled investment account by the govern ing board (in proportion to the principal accounts). Electric Power Bonds worth $30,000 were purchased. The 12% interest was payable on January 1 and July 1. 7. The Norton Fund cash is used to purchase Cravit Company 10% bonds at par for $30,000. January and July 1 are the interest dates. 8. With the cash from the Care Fund, 5200,000 of 8% U.S. Treasury notes was purchased at par. The interest dates are January 1 and July 1. 9. The interest was received on all bonds and notes and was transferred to the proper funds. Dividends of $4,000 were received from BIM stock. 10. The stipulated payment is made to Mr. Carr from the Endowment Fund. 11. Electric Power Company bonds bought at par value for $20,000 are sold at 102. The gain is added to the principal 12. A $300 student loan was made from the Norton Fund. Required: A. Prepare journal entries to record the transactions. B. Prepare the statement of financial position and the statement of activities for the year ended February 28, 2015 TAICPA danted