Private universities, endowments. 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...

Private universities, endowments. 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 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.