roblem III: Pioneer Institute is a privately funded college. Below is its trial balance as of January 1,2 Cash Accounts receivable Investments Dr 1,000 450 3,000 Property, plant, and equipment, net 15,000 Cr Accrued liabilities 600 Bonds payable 5,500 Unrestricted net assets 8,600 Temporarily restricted net assets 2,500 Permanently restricted net assets Total 2,250 19.450 19.450 Events for 2020 are as follows (in thousands): 1 Tuition and fees are $9,000, of which $1,500 is waived for graduate teaching assistantships and $1,200 is covered by scholarships. $5,000 is collected in cash. All tuition and fees relate to 2020. 2 Operating expenses for salaries, utilities, research programs, etc. are $8,000, all paid in cash. Accrued liabilities of $600 were paid in cash. Depreciation on the buildings and equipment is $250. 3 An unrestricted state appropriation of $4,200 is received in cash. 4 Cash donations and gifts for equipment replacement are as follows: Restricted to equipment replacement $550 Restricted to research projects 200 5 $750 of donor-restricted cash is spent to replace equipment. $200 of donor-restricted cash is spent for research projects (included in Item 2 above). 6 $225 is spent to service the bonds ($125 for interest, and $100 for principal; the interest is not included in Item 2 above). 7 Investment income, received in cash, is $2,000, of which $300 is donor-restricted to research programs. Donor-restricted cash used for research programs is $250, included in Item 2 above. Investments have a fair value of $3,850 at year-end. Unrealized gains and losses are unrestricted. Instructions: a. Prepare journal entries to record the transaction. Indicate whether each entry would affect unrestricted, temporarily restricted, or permanent restricted net assets.