the Loan Fund, the Unrestricted Current Fund, and the Restricted Current Fund. January 1 1. A gift of $10,800 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 $21,600. The principal was to be held intact and the income to be used for scholarships for worthy students. against income. students' residence. Mr. Carr has a life expectancy of five years and investments are expected to earn 8% annually. for more than five years. Once the board sells the shares, all the proceeds are to be used to build a student hospital. $32,400 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 $32,400. 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 . 9. The interest was received on all bonds and notes and was transferred to the proper funds. Dividends of $5,000 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 $21,600 are sold at 102 . The gain is added to the principal. 12. A \$324 student loan was made from the Norton Fund. October 1 13. A notice of Brian Carr's death is received. There is no liability to his estate. 14. The Gross Scholarship Fund awards a \$216 scholarship. 15. $200,000 par of U.S. Treasury notes are sold for $205,000. December 31 16. Interest on bonds is received. 17. $120 of principal and $6 of interest were repaid on the student loan. 18. A building was purchased for $225,000 using the funds available from the Carr gift. The residence hall will have a 20 -year mortgage payable to account for the balance. Event Fund 1. 2. 3. 4. 4. Account Titles and Explanation Debit Credit 5. 6. 7. 8. 11. 12. 13. 14. 15. (To record sale of notes) (To transfer investment income to fund) 16. (To record interest received) (To record transfer of funds) (To record income) (To record receipt) 17. 17. 18. (To record receipt of resources to be used) (To record acquisition of building) (To record acquisition of building) (To transfer assets and related liabilities to Investment in Plant Fund) the Loan Fund, the Unrestricted Current Fund, and the Restricted Current Fund. January 1 1. A gift of $10,800 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 $21,600. The principal was to be held intact and the income to be used for scholarships for worthy students. against income. students' residence. Mr. Carr has a life expectancy of five years and investments are expected to earn 8% annually. for more than five years. Once the board sells the shares, all the proceeds are to be used to build a student hospital. $32,400 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 $32,400. 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 . 9. The interest was received on all bonds and notes and was transferred to the proper funds. Dividends of $5,000 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 $21,600 are sold at 102 . The gain is added to the principal. 12. A \$324 student loan was made from the Norton Fund. October 1 13. A notice of Brian Carr's death is received. There is no liability to his estate. 14. The Gross Scholarship Fund awards a \$216 scholarship. 15. $200,000 par of U.S. Treasury notes are sold for $205,000. December 31 16. Interest on bonds is received. 17. $120 of principal and $6 of interest were repaid on the student loan. 18. A building was purchased for $225,000 using the funds available from the Carr gift. The residence hall will have a 20 -year mortgage payable to account for the balance. Event Fund 1. 2. 3. 4. 4. Account Titles and Explanation Debit Credit 5. 6. 7. 8. 11. 12. 13. 14. 15. (To record sale of notes) (To transfer investment income to fund) 16. (To record interest received) (To record transfer of funds) (To record income) (To record receipt) 17. 17. 18. (To record receipt of resources to be used) (To record acquisition of building) (To record acquisition of building) (To transfer assets and related liabilities to Investment in Plant Fund)