Record the following endowment activity events of Private University 1 An alumnus donates $250,000 to the endowment fund The cash is fully invested in bonds with a face value of $242,000 that are purchased at an $8,000 premium The income earned is to be available for the current restricted fund for...

1 Cash 250000 RevenuesPermanently Restricted Contributions 250000 Endowment Investments 250000 ...

Record the following endowment activity events of Private University: 1. An alumnus donates $250,000 to the endowment

Question:

Record the following endowment activity events of Private University:
1. An alumnus donates $250,000 to the endowment fund. The cash is fully invested in bonds with a of $242,000 that are purchased at an $8,000 premium. The income earned is to be available for the current restricted fund for curriculum improvement.
2. A check for $11,250 for interest is received. The premium amortization is $667.
3. The income is transferred to the restricted current fund.
4. The bonds are sold for $260,500.
Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...