Question

Presented below is the preclosing trial balance for the Scholarship Fund, a private-purpose trust fund of the Algonquin School District.

Trial Balance—December 31, 2017	Debits			Credits
Accounts Payable				$	3,300
Accrued Interest Receivable	$	1,330
Administrative Expense		7,880
Cash		69,890
Increase in Fair Value of Investments					5,800
Distributions—Scholarships		80,000
Interest Income					95,000
Investment in Bonds		1,604,000
Net Position—Restricted for Scholarships					1,659,000
	$	1,763,100		$	1,763,100

Required:
Prepare the year-end closing entries and a Statement of Changes in Fiduciary Net Position for the year ended December 31, 2017.

Answer 1

Answers :

Particulars			Amount
Additions	Deductions	Balance	Debit	Credit
Interest income			$ 95,000
	Net increase in fair value			$5800
		Restricted for scholarship		$12,920
	Administrative expenses			$5990
	Distribution for scholarships			$62000
Changes occured in fiduciary net position
Particulars			Amount
Addictions		Deductions	Debit	Credit
Investment earnings
Interest income			$95000
Net increase in fair value of investments			$5800
Total addictions				=$95000+$5800 =$100,800
		Administrative expenses	$7880
		Distribution of scholarship	$80000
Total deductions				=$7880+80000 =$87,880

changes in fiduciary net position :

Change in fiduciary net position = Total addiction - Total deduction

=$100,800 - $87,880

=$12,920

Change in fiduciary net position = $ 1,659,000

Fiduciary net position (ending) = Change in fiduciary net position + Change in fiduciary net position

= $12,920 + $ 1,659,000

= $1,671,920

Change in fiduciary net position = $12,920 Change in fiduciary net position = $ 1,659,000 Fiduciary net position (ending) = $1,671,920