Private universities, loans. Record the following events that affect the loan activities of Private University: 1. An alumnus donates $420,000 to establish the student loan fund. Students are charged...

Private universities, loans. Record the following events that affect the loan activities of Private University:

1. An alumnus donates $420,000 to establish the student loan fund. Students are charged a 5% annual interest rate.

2. Loans of $380,000 are made to students.

3. The remaining $40,000 is deposited in the university credit union, which pays a current interest rate of 7%.

4. Loans of $20,000 are repaid, plus $800 of interest.

5. Interest of $1,400 is received from the university credit union.

6. A student who had borrowed $1,000 was in a serious automobile accident and withdrew from school. The university wrote off the loan as uncollectible.