Question
In: Accounting
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 | $ | 10,500 | ||||||
| Investments | 526,000 | |||||||
| Additions to permanent endowments | $ | 516,000 | ||||||
| Investment income | 54,000 | |||||||
| Expenditures—subscriptions | 43,500 | |||||||
| Intergovernmental grant | ||||||||
| Net increase in fair value of investments | 10,000 | |||||||
| Accrued interest receivable | 3,000 | |||||||
| Accounts payable | 3,000 | |||||||
| $ | 583,000 | $ | 583,000 | |||||
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).
Solutions
ekkarill92 answered 1 year agoRelated Solutions
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...
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
$
9,000
Investments
520,000
Additions to permanent endowments
$
511,500
Investment income
49,500
Expenditures—subscriptions
40,500
Intergovernmental grant
Net...
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