5-6.A citizen group raised funds to establish an endowment for the Eastville City Library. Under the terms of the trust agreement, theprincipal must be maintained, but the earnings of the fund are to be used to purchase database and periodical subscriptions for thelibrary. A preclosing trial balance of the library permanent fund follows:Trial Balance-December 31, 2024CashInvestmentsAdditions to permanent endowmentsInvestment incomeExpenditures-subscriptionsNet increase in fair value of investmentsAccrued interest receivableAccounts payableDebits$ 7,500631,00036,7001,000$676,200rage 140Credits$625,00042,5006,0002,700$676,200Required: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).

Performance reports provides key stakeholders vital information about the sources of income, how…

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).

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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