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. 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).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![5-6.
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-subscriptions
Net increase in fair value of investments
Accrued interest receivable
Accounts payable
Debits
$ 7,500
631,000
36,700
1,000
$676,200
rage 140
Credits
$625,000
42,500
6,000
2,700
$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).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc07f6c2c-1474-43e0-9089-7bed576908de%2F787097f1-a68b-4f68-aeb2-440bfd9e652b%2F3929voh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:5-6.
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-subscriptions
Net increase in fair value of investments
Accrued interest receivable
Accounts payable
Debits
$ 7,500
631,000
36,700
1,000
$676,200
rage 140
Credits
$625,000
42,500
6,000
2,700
$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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