Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Please help me these questions and give me explanations of those EX. 13-4 University loan funds can readily be accounted for within the general framework

Please help me these questions and give me explanations of those image text in transcribed
EX. 13-4 University loan funds can readily be accounted for within the general framework applicable to not-for-profit organizations. Bronxville College maintains a loan fund of approximately $1 million (including receivables). The funds are invested in stocks and bonds, and all investment income must be added to the balance in the fund. The fund, however, is unrestricted inasmuch as it was established by the college itself, not by donors. Prepare journal entries to record the following events and transactions that took place during the year. 1. The college directed an additional $75,000 of donor contributions to the loan fund. 2. The fund made new student loans of $200,000. It estimated that approximately 10 percent will be uncollectible. 3. It earned interest and dividends of $6,000. In addition, the market value of its investments increased by $3,000. 4. It collected $140,000 in loan repayments, plus an additional $40,000 in interest. 5. It wrote off $20,000 of loans as uncollectible

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Algebra

Authors: Robert F Blitzer

7th Edition

9780134453262

Students also viewed these Accounting questions