Public university, various transactions. The following events occurred as part of the operations of Craig State University, a public university: 1. To construct a new computer complex, the university...

Public university, various transactions. The following events occurred as part of the operations of Craig State University, a public university:

1. To construct a new computer complex, the university floated at par a $22,000,000, 7% serial bond issue on October 1, paying interest on June 30 and December 31. Accrued interest is to be transferred to the retirement of indebtedness plant fund when construction begins. Construction costs are to be accumulated in the unexpended plant fund until the unit is completed.

2. Since construction has begun, the accrued interest, which must be used to assist in meeting bond interest payments, is transferred. Payments for construction to date total $5,000,000.