Reference no: EM132440995

Question - Journal Entries for Contributions Dunning College, a private college in northern Idaho, receives the following donations:

1. A parent of a current accounting student contributes $5 million with the stipulation that the donation be used to partially fund a new building for the business school. The college does not know whether it can accumulate enough additional resources to go ahead with the project.

2. An accounting alumnus contributes $500,000 to the accounting department. The alumnus stipulates that the principal of the contribution remain intact, and any investment income be used to fund a speaker series on current accounting issues. The college invests the $500,000 in securities, and reports investment income of $15,000. The $15,000 will be used to fund speaker transportation and fees next year. The investments are worth $497,000 at year end.

3. A retired recruiter from a local CPA firm notifies the college that her will states that $1 million of her estate be paid to the accounting department of the college, with no restrictions on use.

4. A student donates a van valued at $20,000, specifying that the van be used to transport disabled students from their dorms to class.

5. The van in item 4. depreciates by $3,000.

6. Alumni and friends contribute $6 million to the college. The college's board of directors sets aside $300,000 of these contributions for repairs to the administration building.

Required - For each of the above items, prepare the appropriate journal entry or entries. If the item affects net assets, specify which category of net assets is affected.