Business, 01.08.2020 01:01 mandy9386

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 $8,500
Investments 18,000
Additions to permanent endowments $510,000
Investment income 48,000
Expenditures-subscriptions 39,500
Intergovernmental grant 8,000
Net increase in fair value of investments 2,000
Accrued interest receivable 2,000
Accounts payable $568,000 $568,000
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).

Answers: 1

Show answers

Answers

Answer from: marcitahr

a. Journal entries

Particulars Debit Credit

Revenue: Addition to permanent $510,000

endowment

Revenue investment income $48,000

Revenue : increase in fair value $8,000

of investment

Expenditure - subscription $39,500

Fund balance $526,500

b. Statement of revenue , expenditure , and changes in fund balance

Particulars Amount

Revenue

Addition to permanent endowment $510,000

Investment income $48,000

Increase in fair value of investment $8,000

Total revenue $566,000

Expenditure

Library subscription $-39,500

Net change in fund balance $526,500

Beginning fund balance 0

Ending fund balance $526,500

c. Balance sheet

Assets

Cash $8,500

Investments $5,18,000

Accrued interest receivable $2,000

Total assets $528,500

Liabilities and fund balance

Liabilities

Accounts payable $2,000.00

Fund balance

Non spendable permanent $510,000

fund principal

Assigned to library $16,500

($526,500 - $510,000)

Total fund balance $526,500

Total liabilities and fund balance $528,500

Answer from: Quest

Answer the correct answer is price ceiling;

Answer from: Quest

Answerdecrease the effective price of coffee received by ///and decrease the equilibrium quantity of coffee;

Another question on Business

Business, 21.06.2019 14:30

The government often provides goods that are nonrivalrous and nonexclusive to overcome which market failure

Answers: 1

Answer

Business, 21.06.2019 20:30

Which of the following statements regarding the learning curve and economies of scale is accurate? answers: just as diseconomies of scale are presumed to exist if a firm gets too large, there is a corresponding increase in costs in the learning-curve model as the cumulative volume of production grows.where diseconomies of scale are presumed to exist if a firm gets too large, there is no corresponding increase in costs in the learning-curve model as the cumulative volume of production grows.where diseconomies of scale are presumed to exist if a firm gets too small, there is no corresponding increase in costs in the learning-curve model as the cumulative volume of production grows.just as diseconomies of scale are presumed to exist if a firm gets too small, there is a corresponding increase in costs in the learning-curve model as the cumulative volume of production grows.

Answers: 1

Answer

Business, 22.06.2019 08:30

Which of the following is an example of search costs? a.) driving to a faraway place to find available goods b.) buying goods in some special way that is outside the normal channels c.) paying a premium cost for goods d.) selling extra goods for a discount price

Answers: 1

Answer

Business, 22.06.2019 10:30

Zapper has beginning equity of $257,000, net income of $51,000, dividends of $40,000 and investments by stockholders of $6,000. its ending equity is

Answers: 2

Answer

You know the right answer?

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

Questions