The Western Falls School District received a $ 100,000 gift from a wealthy alumnus , and an agreement was reached that $10,000 per year would be paid to the valedictorian of the high school class as a freshman scholarship to college , until the funds were depleted . The $ 100,000 would be accounted for as : OA Private - Purpose Trust Fund A custodial fund An Expendable Trust Fund An investment trust fund
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The Western Falls School District received a $ 100,000 gift from a wealthy alumnus , and an agreement was reached that $10,000 per year would be paid to the valedictorian of the high school class as a freshman scholarship to college , until the funds were depleted . The $ 100,000 would be accounted for as : OA Private - Purpose Trust Fund A custodial fund An Expendable Trust Fund An investment trust fund
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- On January 1, 2018, Jack Bauer donated $200,000 to the city of Alexander to be set aside as a trust fund for water quality improvements made by the city. The funds were fully invested in bonds purchased at a premium with a face value of $194,000. During the year, cash received on investments was $15,000. Premiums on the bonds purchased were amortized at $600 per year. A total of $12,000 was transferred to a special revenue fund to carry out the purpose of the trust. Prepare the journal entries to record these transactions in the permanent fund and closing entries. Prepare the balance sheet of the permanent fund as of December 31, 2018.During the year, Private College received the following: An unrestricted $10,000 pledge to be paid the following year. A $70,000 cash gift restricted for scholarships. A notice from a recent graduate that the college is named as a beneficiary of $25,000 in that graduate's will. What amount of contribution revenue should Private College report in its statement of activities? A.) $10,000 B.) $70,000 C.) $105,000 D.) $80,000Presented below is the preclosing trial balance for the Scholarship Fund, a private-purpose trust fund of the Algonquin School District. Trial Balance—December 31, 2020 Debits Credits Accounts Payable $ 3,100 Accrued Interest Receivable $ 1,250 Administrative Expense 7,410 Cash 65,940 Increase in Fair Value of Investments 5,500 Distributions—Scholarships 76,000 Interest Income 90,000 Investment in Bonds 1,520,000 Net Position: Restricted for Scholarships 1,572,000 $ 1,670,600 $ 1,670,600 Required:Prepare the year-end closing entries and a Statement of Changes in Fiduciary Net Position for the year ended December 31, 2020
- The will of a wealthy philanthropist left ₱5,000,000 to establish a perpetual charitable foundation. The foundation trustees decided to spend ₱1,200,000 to provide facilities immediately and to provide ₱100,000 of capital replacement at the end of each 5-year period. If the invested funds earned 12% per annum, what would be the year-end amount available in perpetuity from the endowment for charitable purpose? Use 5 as focal point. Ans. ₱79,245Ormond beach received a gift of corporate stock valued at $1,200,000 on the date of the gift. The donor specified that the principal amount of the gift be maintained in perpetuity, but that earnings can be used to acquire works of art to improve the appearance of public buildings. All changes in fair value are to increase or decrease the principal amount of the gift. Assuming that Ormond beach uses a permanent fund to account for the endowment and a special revenue fund to account for the earmarked earnings from the endowment, explain the accounting process for (1) receipt of the original gift, (2) receipt of quarterly dividends, (3) notification that fair value of the original stock increased by $3,000 during the year, and (4) the effect on fund balances of closing temporary accounts at year-end. (Note: Ignore the effects of the transactions at the government-wide level).A citizen of the City of Townsend makes a donation of $22,000 in investments. The citizen has stipulated that the investments be held. Any resulting income must be used to help maintain the city’s cemetery. In which fund should this asset be reported? Special revenue funds Capital projects funds Permanent funds General Funds
- Scofield City received a donation from the estate of the late Lisa O’Reilly to be used to support the city’s public library. The gift consisted of $200,000 cash and a portfolio of securities with a market value of $350,000. The securities have a book value of $250,000. The donor stipulated that the principal of the gift, including investment gains (realized and unrealized) but excluding investment losses, must be kept intact. The income must be used to care for and maintain the book collection at the newly renamed O’Reilly Public Library. All appropriate costs, including investment losses, may be charged against the revenues yearly to determine the amount available for the specified purposes. During the year, the city engaged in the following transactions on behalf of the library. Prepare the appropriate entries in the city’s permanent fund. a) Accepted the donation. b) Received dividends and interest of $18,000. c) Purchased securities for $200,000. d) Sold securities that were part…The following are selected transactions for Lakeview Cooperative which uses the restricted fund method. Lakeview has an operating fund, a capital fund and an endowment fund: Pledges amounting to $550,000 were received, of which $75,000 applies to the operations of the following year. It is estimated that 3% of the pledges will be uncollectible. A former resident who became a successful businessperson, donated $80,000 to be held in an endowment. Interest on the endowment is unrestricted. The association purchased furniture and fixtures at a cost of $14,000. These purchases were made using operating funds. Pledges of $350,000 were collected, while pledges amounting to $5,500 were written off as uncollectible. A local newspaper agreed to offer Lakeview a full-page ad. This had an estimated value of $1,500. Interest and dividends received amounted to $8,000 on endowment fund investments. Amortization for the year amounted to $20,000. Required: Prepare journal entries to record the above…Record the following events that affect (1) Public University and (2) Private University: a. A private grant of $200,000 was received to be used exclusively for defraying costs of holding conferences on the topic of genes. b. By year-end, $110,000 of the grant mentioned in item (a) had been applied to the purpose stipulated. c. The grant provided that amounts not awarded by year-end are to be transferred to the endowment fund. The liability to that fund is recorded. d. An alumnus, who was a former athlete, contributed $15,000 to assist in the search for a basketball coach.
- The governing board of a private not-for-profit entity votes to set $400,000 in cash aside in an investment fund so that this money and future interest will be available in five years, when a new building is scheduled for construction. Which of the following is not true? Multiple Choice The investments are reported on the statement of financial position as net assets without donor restrictions. The acquisition of the investments is not reported on the statement of activities. Board-designated funds will appear in the net asset section of the statement of financial position as net assets with donor restrictions. Income earned by these investments appears on the statement of activities under net assets without donor restrictions.Central City was awarded two state grants during its fiscal year ending September 30, 20X1: a $2 million block grant that can be used to cover any operating expenses incurred during fiscal 20X2, and a $1 million grant that can be used any time to acquire equipment for its police department. For the year ending September 30, 20X1, Central City should recognize in grant revenue in its fund financial statements (in millions): $0 $1 $2 $3 Assume the same facts as in the previous example. How much should the city recognize in grant revenue in its government‐wide statements? $0 $1 $2 $3 For its fiscal year ending September 30, 20X2, Twin City levied $500 million in property taxes. It collected taxes applicable to fiscal 20X2 as follows (in millions): June 1, 20X1, through September 30, 20X1 $ 20 October 1, 20X1, through September 30, 20X2 $440 October 1, 20X2, through November 30, 20X2 $ 15 December 20X2 $ 4 The city estimates that $10 million of the outstanding balance…2 Southeastern College began the year with endowment investments of $1,450,000 and $860,000 of restricted cash designated by a donor for capital additions. During the year, an additional $524,000 ddonation was received for capital additions. These funds, together with those contributed in the prior year, were used to purchase 150 acres of land adjacent to the university. An alum contributed $360,000 to the permanent endowment and pledged to provide an additional $580,000 early next year. The cash was immediately invested. By terms of the endowment agreement, interest and dividends received on the investments are restricted for scholarships. Gains or losses from changes in the fair value of the investments, however, are not distributed but remain in the endowment. During the year, $66,000 of interest and dividends were received on endowment investments. At year-end, the fair value of the investments had increased by $9,300. Required: Prepare journal entries to record the above…