Question

On July 1, 2019, the Morgan County School District received a $69,000 gift from a local civic organization with the stipulation that, on June 30 of each year, $5,400 plus any interest earnings on the unspent principal be awarded as a college scholarship to the high school graduate with the highest academic average. A private-purpose trust fund, the Civic Scholarship Fund, was created.

1. On July 1, 2019, the gift was received and immediately invested.
2. On June 30, 2020, $5,400 of the principal was converted into cash. In addition, $4,400 of interest was received.
3. On June 30, the $9,800 was awarded to a student who had maintained a 4.0 grade point average throughout each of her four years.
4. The nominal accounts were closed.
   

Required:
a. Record the above transactions on the books of the Civic Scholarship Fund.
b. Prepare a Statement of Changes in Fiduciary Net Position for the Civic Scholarship Fund for the year ended June 30, 2020.

Requirement 1:

On July 1, 2019, the gift was received and immediately invested. Record the entry for receipt of the cash gift.

On July 1, 2019, the gift was received and immediately invested. Record the entry for the investment of the cash gift.

On June 30, 2020, $5,400 of the principal was converted into cash. In addition, $4,400 of interest was received.

On June 30, the $9,800 was awarded to a student who had maintained a 4.0 grade point average throughout each of her four years.

The nominal accounts were closed.

Requirement 2:

Prepare a Statement of Changes in Fiduciary Net Position for the Civic Scholarship Fund for the year ended June 30, 2020.

	MORGAN COUNTY SCHOOL DISTRICT Statement of Changes in Fiduciary Net Position Civic Scholarship Fund For the Year Ended June 30, 2020 Additions: Total Additions Deductions: Change in Fiduciary Net Position

Answer 1

Date	Transaction	Journal	Debit	Credit
July-1-19	1a	Cash	69,000
		Additions-Contributions		69,000
		(Being to record the Gift received from Local Civic organization)
July-1-19	1b	Investments	69,000
		Cash		69000
		(Being to record the gift received being invested.)
Jun-30-20	2	Cash	9,800
		Additions - Investment earning Interest		4,400
		Investments		5,400
		(Being to record investment and Interest Income received in cash)
Jun-30-20	3	Deductions - Scholarship-Awards	9,800
		Cash		9,800
		(Being to record cash paid as scholarships)
Jun-30-20	4	Additions -Contributions	69,000
		Additions - Investment earning Interest	4,400
		Deductions - Scholarship-Awards		9,800
		Fiduciary-net-position-Restricted-for-Scholarship-awards		63,600
		(Being to record Civic scholarship fund)

MORGAN COUNTY SCHOOL DISTRICT Statement of Changes in Fiduciary Net Position Civic Scholarship Fund For the Year Ended June 30, 2020
Additions: Contributions Investment Income: Interest    Total Additions	$69,000 $4,400 $73,400
Deductions: Scholarship Awards	$9,800
Change in Net Assets	$63,600
Net Assets- Beginning	0
Net Assets-Ending	$63,600

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