Problem:
Help to prepare, in general journal form, the entries required for each of the following selected transactions of Coastal University, a state-funded public institution. Some of these transactions are related and some are not. Indicate in which fund each entry is being made.
1) A generous alumnus donated $200,000 that can only be used for research on diabetes research. The full $200,000 was received in FY06.
2) During FY06, expenses of $100,000 were made in cash for diabetes research (See item 1 above.)
3) $4,000,000 in long-term bonds were issued to construct a new parking garage on campus.
4) During FY06, the parking garage (see item 3 above) was partially completed at a total cash expenditure of $2,400,000.
5) During 2006, interest was paid in the amount of $160,000 on the long-term bonds issued for the parking garage project (see item 3 above).