University Loan Fund The following events relate to Grearson University Loan Fund:
1. $100,000 is received from an estate to establish a faculty and student loan fund. Annual interest rates range from 8% for students to 10% for faculty.
2. Loans to students totaled $60,000, and $40,000 was disbursed to faculty members (of the total loans made, 10% are estimated to be uncollectible).
3. Grearson wrote off a $1,000 student loan as uncollectible.
4. The following loans were repaid.

Required:
Prepare the journal entries necessary to record these transactions and indicate the fund(s) in which the transactions arerecorded.

Transcribed Image Text:

Princibal Interest Faculty Sudent $5,000 10,000 8500