A private, not-for-profit university received donations of $800,000 in 2011 that were restricted to capital improvements of the football stadium. The university spent $670,000 on capital improvements for the stadium in 2011 and recorded depreciation of $130,000.
In 2011, an alumnus contributed a $1,500,000 endowment for football scholarships with all endowment income restricted for that purpose. Endowment income totaled $75,000 for the year and scholarship awards were $68,000.
Prepare the appropriate journal entries for the university for these transactions.
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