A citizen group raised funds to established an endowment for the Eastville City Liabrary. 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 permanant fund follows: Debits: Cash $7,500; Investments $630,000; Expenditures - subscriptions $39,500 Accrued interest receivable $2,000 Credits: Additions to permanant endowments $625,000; Investment Income $48,000; Net increase in fair value of investments $5,000; Accounts Payable Required: A. Prepare any closing entries necessary at year-end b. prepare a Statement of Revenuess, Expenditures, and Changes in Fund Balance for the library Permanant fund. c. Prepare a balance sheet for the library permamant fund (use restricteed to Library for any spendable fund balance)
A citizen group raised funds to established an endowment for the Eastville City Liabrary. 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
Debits: Cash $7,500; Investments $630,000; Expenditures - subscriptions $39,500 Accrued interest receivable $2,000
Credits: Additions to permanant endowments $625,000; Investment Income $48,000; Net increase in fair value of investments $5,000; Accounts Payable
Required:
A. Prepare any closing entries necessary at year-end
b. prepare a Statement of Revenuess, Expenditures, and Changes in Fund Balance for the library Permanant fund.
c. Prepare a balance sheet for the library permamant fund (use restricteed to Library for any spendable fund balance)
This question is asking the closing journal entries, Statements of Revenue, Expenditures, and Changes in Fund Balance for the library Permanent fund & balance sheet. let see ................
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