On July 1, 2019, the Morgan County School District received a $40,000 gift from a local civic organization with the stipulation that, on June 30 of each year, $2,500 plus any interest earnings on the unsoent principal be awarded as a collegescholorship to the high school graduate with the highest academic average. A private-purpose trust fund, the Civic Scholorship Fund, was created. Required: a. Record the followin gtransactions on the books of the Civic Scholorship Fund =: 1. On July 1, 2019, the gift was received and immediatly invested. 2. On June 30, 2020, $2,500 of the principal was converted to cash. In addition, $1,000 of interest was received. 3. On June 30 , the $3,500 was awarded to a student who had maintained a 4.0 gpa throughout her four years. 4. The nominal accounts were closed. B. Prepare a Statement of Changes in Fiduciary Net Position for the Civic Scholorship Fund for the year ended June 30, 2020.
On July 1, 2019, the Morgan County School District received a $40,000 gift from a local civic organization with the stipulation that, on June 30 of each year, $2,500 plus any interest earnings on the unsoent principal be awarded as a collegescholorship to the high school graduate with the highest academic average. A private-purpose trust fund, the Civic Scholorship Fund, was created.
Required:
a. Record the followin gtransactions on the books of the Civic Scholorship Fund =:
1. On July 1, 2019, the gift was received and immediatly invested.
2. On June 30, 2020, $2,500 of the principal was converted to cash. In addition, $1,000 of interest was received.
3. On June 30 , the $3,500 was awarded to a student who had maintained a 4.0 gpa throughout her four years.
4. The nominal accounts were closed.
B. Prepare a Statement of Changes in Fiduciary Net Position for the Civic Scholorship Fund for the year ended June 30, 2020.
| PLEASE LIKE THE ANSWER | ||||
| answer | ||||
| Prepare Journal entries as follows :- | ||||
| s.no | General Journal | debit $ | credit$ | |
| 1.a | cash | 40,000 | ||
| To addition's contributions | 40,000 | |||
| 1. b | investments | 40,000 | ||
| To cash | 40,000 | |||
| 2 | cash | 3500 | ||
| To Additions investment Earnings interest | 1000 | |||
| To investment | 2500 | |||
| 3 | Deduction - scholarship, awards | 3500 | ||
| To cash. | 3500 | |||
| 4 | addition's contributions | 40,000 | ||
| Additions investment Earnings interest | 1000 | |||
| To Deduction - scholarship, awards | 3500 | |||
| To fiduciary net position: restricted for scholarship awards | 37500 |
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
