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A citizen group raised funds to establish an endowment for the Eastville City Library. Under the...

A citizen group raised funds to establish an endowment for the Eastville City Library. Under the terms of the trust agreement, the principal must be maintained, but the earnings of the fund are to be used to purchase database and periodical subscriptions for the library. A preclosing trial balance of the library permanent fund follows:

Trial Balance—December 31, 2017 Debits Credits
Cash $ 11,000
Investments 528,000
Additions to permanent endowments $ 517,500
Investment income 55,500
Expenditures—subscriptions 44,500
Intergovernmental grant
Net increase in fair value of investments 10,500
Accrued interest receivable 3,250
Accounts payable 3,250
$ 586,750 $ 586,750


Required:
a. Prepare any closing entries necessary at year-end.
b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the library permanent fund.
c. Prepare a balance sheet for the Library Permanent Fund (Use Assigned to Library for any spendable fund balance).


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Expert Solution

ekkarill92 answered 2 years ago
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