The following transactions of Beltville College transpired during 2020. The funds necessary are the Endowment Fund, the Annuity Fund, the Plant FundUnexpended, the Plant FundInvestment in Plant, the Loan Fund, the Unrestricted Current Fund, and the Restricted Current Fund.

January 1

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 governing 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 1 and July 1 are the interest dates.
8. With the cash from the Carr Fund, $200,000 of 8% U.S. Treasury notes was purchased at par. The interest dates are January 1 and July 1.

July 1

1. 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.
2. The stipulated payment is made to Mr. Carr from the Endowment Fund.
3. Electric Power Company bonds bought at par value for $20,000 are sold at 102. The gain is added to the principal.
4. A $300 student loan was made from the Norton Fund.

October 1

1. A notice of Brian Carr's death is received. There is no liability to his estate.
2. The Gross Scholarship Fund awards a $200 scholarship.
3. $200,000 par of U.S. Treasury notes are sold for $206,000.

December 31

1. Interest on bonds is received.
2. $100 of principal and $5 of interest were repaid on the student loan.
3. A building was purchased for $250,000 using the funds available from the Carr gift. The residence hall will have a 20year mortgage payable to account for the balance.

PLEASE SHOW THE FORMULAS TO THE ANSWERS BELOW

(continued)

Event	Fund	Journal Entry
9A1	Endowment Fund Brown	Cash Due to Unrestricted Current Fund	600	600
9A2	Unrestricted Current Fund	Due from Endowment Fund Brown Investment Income	600	600
9B1	Endowment Fund Gross	Cash Due to Restricted Current Fund	1,200	1,200
9B2	Restricted Current Fund	Due from Endowment Fund - Gross Investment Income	1,200	1,200
9C1	Endowment Fund - Norton	Cash Due to Loan Fund	1,500	1,500
9C2	Loan Fund	Due From Endowment Fund - Norton Investment Income	1,500	1,500
9D	Annuity Fund	Cash (8%)($200,000)/2 Annuity payable	8,000	8,000
9E	Endowment Fund - Jackson	Cash Investment Income (BIM dividend)	4,000	4,000
9F1	Endowment Fund - Brown	Due to Unrestricted Current Fund Cash	600	600
9F2	Unrestricted Current Fund	Cash Due from Endowment Fund - Brown	600	600
9G1	Endowment Fund - Gross	Due to Restricted Current Fund Cash	1,200	1,200
9G2	Restricted Current Fund	Cash Due from Endowment Fund - Gross	1,200	1,200
9H1	Endowment Fund - Norton	Due to Loan Fund Cash	1,500	1,500
9H2	Loan Fund	Cash Due from Endowment Fund Norton	1,500	1,500
10	Annuity Fund	Annuity Payable Cash	10,000	10,000
11	Endowment Fund - Brown	Cash Investments Fund Balance	6,800	6,667 133
	Endowment Fund - Gross	Cash Investments Fund Balance	13,600	13,333 267
12	Loan Fund	Loan Receivable Cash	300	300
13	Annuity Fund Unexpended Plant Fund	Annuity Payable Revenue Due to Unexpended Plant Fund Due from Annuity Fund Fund Balance Restricted	79,109 123,891 203,000	203,000 203,000
14	Restricted Current Fund	(1) Expenses Scholarship Cash	200	200
15	Annuity Fund	Cash Investment income Investments	206,000	6,000 200,000
	Annuity Fund	Investment income) Due to unexpended plant fund	6,000	6,000
	Unexpended Plant Fund	Due from annuity fund Fund balance restricted	6,000	6,000
16	Endowment Fund Norton	(1A) Cash Due to Loan Fund (1B) Due to Loan Fund Cash	1,500 1,500	1,500 1,500
	Loan Fund	(2A) Due from Endowment Fund - Norton Investment income (2B) Cash Due from Endowment Fund Norton	1,500 1,500	1,500 1,500
	Endowment Fund-Brown	Cash Due to unrestricted current fund	200	200
	Unrestricted current fund	Due from endowment fund - Brown Endowment income	200	200
	Endowment Fund-Gross	Cash Due to restricted current fund	400	400
	Restricted Current Fund - Gross	Due from Endowment Fund - Gross Investment Income	400	400
	** Note: These entries assume the cash due on January 1 was received on December 31.
17	Loan Fund	Cash Loan Receivable Interest income	105	100 5
18	Annuity Fund	(1) Due to Unexpended Plant Fund Cash	209,000	209,000

Unexpended Plant Fund Investment in Plant

(2) Cash Due from Annuity Fund Mortgage Payable (3) Building Cash (4) Fund Balance Restricted Mortgage Payable Building (5) Building Mortgage Payable Net Investment in Plant

250,000 250,000 209,000 41,000 250,000

209,000 41,000 250,000 250,000 41,000 209,000