How is transfer from the permanent fund to revenue fund

Assignment Help Financial Accounting

Reference no: EM135791

The McCracken County Humane Society (MCHS), which is part of a county's reporting entity, established a permanent fund to give support for its pet neutering program. As of the starting of the year, the fund had a balance of $600.000, composed of both marketable securities and cash.

The program itself, which is accounted for in a special revenue fund, is funded by both the income and direct contributions from the permanent fund. At the start of the year, the special revenue fund had assets (all invested) of $26,000.

The subsequent transactions and events happened in a recent year:

1. The MCHS conducted a Walk Your Pet Day fundraising drive. The event raised $120,000 of which $20,000 was in pledges expected to be collected shortly after year-end.

2. The society acquired medicine and food at a cost of $60,000 (cash). Through the year it used $30,000 of these supplies. The society accounts for supplies on a consumption basis. It incurred other operating costs all paid in cash of $85,000.

3. The society earned interest of $45,000 on investments accounted for in the permanent fund.

4. In the current year, the market value of the investments held by the permanent fund increased by $30,000. Per the terms of the agreement establishing the endowment, all capital gains, both realized and unrealized, must be included to principal.

5. In the year the value of investments held by the special revenue fund increased by $3,000.

6. The society transferred cash to the special revenue fund in the amount of the earnings of the particular revenue fund.

a. Arrange journal entries to record the transactions and events. Be sure you shown the fund in which they would be recorded.

b. In your opinion, could the unrealized gains on the investment held in the special revenue fund be nonexpendable or expendable? Describe.

c. How is the transfer from the permanent fund to the particular revenue fund reported in the government-wide statements?

Reference no: EM135791

Questions Cloud

Relation between voluntary and involuntary reflex movement : What does this show about the relation between voluntary and involuntary reflex movement. If the bacteriorhodopsin molecules were randomly oriented, would you expect ATP to be synthesized? Give details about the answers.

5 ways to develop strategic business : 5 ways to develop strategic business and briefly discuss differentiate, customer-oriented, understand clients need, r-s platform and management, active marketing, etc

Actions to forward market in order to make arbitrage profit : Compare and contrast outsourcing and offshoring. Identify two companies that outsource certain tasks. What is this reason that each of these companies outsource

The capability of motor proteins to transport material : Based on the structure of individual keratin subunits, why would a single point mutation in the alpha-helical region of the monomer result in a defect in the polymer.

How is transfer from the permanent fund to revenue fund : In your opinion could the unrealized gains on the investment held in the special revenue fund be nonexpendable or expendable. How is the transfer from the permanent fund to the particular revenue fund reported in the government-wide statements

Provide the name of the fracture and the location : What factors establish the choice of a paper strip containing bacterial endospores or a sealed ampule containing an endospore suspension for testing heat-sterilization equipment.

Situations forms in competitive markets : he perfectly competitive form maximizes profits by producing 10 units of output. At what price does it sell these units.

What constrains population development : What promotes exponential growth? What constrains population development.

Compare and contrast outsourcing and offshoring : Compare and contrast outsourcing and offshoring. Identify two companies that outsource certain tasks. What is this reason that each of these companies outsource

User Account

All Pages