Question

Student groups and other campus groups deposited an additional $150,000 of organization funds with the University; $120,000 was withdrawn; and $40,000 in cash was invested for the long term. Assuming a nongovernmental not-for-profit college, the journal entry(ies) that capture these transactions is (are) ________.

Answer 1

The journal entries for the transactions are: initial deposit of $150,000, withdrawal of $120,000, and investment of $40,000 for the long term.

Step-by-step explanation:

The journal entries that capture the transactions are as follows:

1. Initial deposit of $150,000:
   Debit: Cash $150,000
   Credit: Organization Funds $150,000
2. Withdrawal of $120,000:
   Debit: Organization Funds $120,000
   Credit: Cash $120,000
3. Investment of $40,000 for the long term:
   Debit: Cash $40,000
   Credit: Long-term Investments $40,000