Bronxville College maintains a loan fund of approximately 1 million
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.

Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
Relevant Tutors available to help