Transactions on the books for library book permanent fund

Reference no: EM13789672

The City of Melvin received a gift of $2,500,000 from a local resident on April 1, 2012 and signed an agreement that the funds would be invested on a permanent basis and the income would be used to purchase books for the city library. The following transactions took place during the fiscal year ended Dec 31, 2012.

a. The gift was recorded on the books on April 1.

b. On April 1, 2012, the PRZ Co. bonds were purchased in the amount of $2,500,000, at par. The bonds carry an annual interest rate of 5 percent, payable semiannually on October 1 and April 1.

c. On October 1, the semiannual interest was received.

d. From October 1 through December 1, payments were made totaling $35,000 to purchase books for the city library.

e. On December 31, an accrual was made for interest.

f. After a review of the bond market on December 31, 2012, the bonds had a market value of $2,511,000, exclusive of accrued interest.

g. The books were closed on December 31.

Required

a. Record the transactions on the books for Library Book Permanent Fund.

b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the Library Book Permanent Fund for the year ended December 31, 2012.

c. Prepare the Balance Sheet for the Library Book Permanent Fund for the year ended December 31, 2012.

Reference no: EM13789672

Questions Cloud

Discuss two reasons each in favour of james hardie executive : Using utilitarianism, discuss two reasons each in favour of and against james hardie executives conduct.

Good fats and bad fats issues : Describe some of the consequences associated with the overconsumption of bad carbohydrates.

Discusses the purpose of criminal punishment : The author discusses "The Purpose of Criminal Punishment" and provides a number of reasons for its use. Your assignment is to write a response on your belief of capital punishment and its relationship for deterring crime, while discussing the ethic..

Eassy on brain and behavior : Brain and Behavior

Transactions on the books for library book permanent fund : Record the transactions on the books for Library Book Permanent Fund.

A serious piece of junk : Identify any rhetorical devices you find in the following passages, and explain their purposes. If MaxiMotors gave you a good price on that car, you can bet there's only one reason they did it: it's a serious piece of junk.

Idea that young people should be required to wear helmets : Write a persuasive essay for or against the idea that young people should be required to wear helmets when taking part in these activities.

Determine riordans manufacturing strategy : Determine Riordans manufacturing strategy and explain its benefits and create a process flow diagram for the electric fan supply chain.

How union pacific will be affected by external factors : Perform an analysis of the social/demographic, technological, economic, environmental/geographic, and political/legal/governmental segments to understand the general environment facing Union Pacific.

User Account

All Pages