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A citizen group raised funds to establish an endowment for the Eastville City Library. 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 permanent fund follows: Trial Balance-December 31, 2024 Cash Investments Additions to permanent endowments Investment income Expenditures-Library Net increase in fair value of investments Accrued interest receivable Accounts payable Debits $7,500 631,000 36,700 1,000 Credits $625,000 42,500 6,000 2,700 $676,200 $676,200 Required: a. Prepare any closing entries necessary at year-end. b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the library permanent fund. c. Prepare a balance sheet for the Library Permanent Fund (Use Restricted to Library for any spendable fund balance).

A citizen group raised funds to establish an endowment for the Eastville City Library. 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 permanent fund follows: Trial Balance-December 31, 2024 Cash Investments Additions to permanent endowments Investment income Expenditures-Library Net increase in fair value of investments Accrued interest receivable Accounts payable Debits $7,500 631,000 36,700 1,000 Credits $625,000 42,500 6,000 2,700 $676,200 $676,200 Required: a. Prepare any closing entries necessary at year-end. b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the library permanent fund. c. Prepare a balance sheet for the Library Permanent Fund (Use Restricted to Library for any spendable fund balance).

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A citizen group raised funds to establish an endowment for the Eastville City Library. 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 permanent fund follows: Trial Balance-December 31, 2024 Cash Investments Additions to permanent endowments Investment income Expenditures-Library Net increase in fair value of investments Accrued interest receivable Accounts payable Debits $7,500 631,000 36,700 1,000 Credits $625,000 42,500 6,000 2,700 $676,200 $676,200 Required: a. Prepare any closing entries necessary at year-end. b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the library permanent fund. c. Prepare a balance sheet for the Library Permanent Fund (Use Restricted to Library for any spendable fund balance).
Transcribed Image Text:A citizen group raised funds to establish an endowment for the Eastville City Library. 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 permanent fund follows: Trial Balance-December 31, 2024 Cash Investments Additions to permanent endowments Investment income Expenditures-Library Net increase in fair value of investments Accrued interest receivable Accounts payable Debits $7,500 631,000 36,700 1,000 Credits $625,000 42,500 6,000 2,700 $676,200 $676,200 Required: a. Prepare any closing entries necessary at year-end. b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the library permanent fund. c. Prepare a balance sheet for the Library Permanent Fund (Use Restricted to Library for any spendable fund balance).
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