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, 2020Debits Credits Cash$15,000 Investments 544,000 Additions to permanent endowments $529,500 Investment income 67,500 Expenditures—subscriptions 52,500 Net increase in fair value of investments 14,500 Accrued interest receivable 5,250 Accounts payable 5,250 $616,750 $616,750 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 Subscriptions for any spendable fund balance). Journal entry worksheetRecord the closing entry to transfer revenue and expenditure to fund balance.Note: Enter debits before credits.Eventa.Record entryTotal AssetsRequired A Required BRequired CPrepare a balance sheet for the Library Permanent Fund (Use Restricted to SubEASTVILLE CITY LIBRARYLibrary Permanent FundTotal LiabilitiesGeneral JournalClear entryBalance SheetAs of December 31, 2020AssetsLiabilities, Deferred Inflows, and Fund BalancesLiabilitiesFund BalancesTotal Fund BalancesTotal Liabilities and Fund Balances$$00001DebitCreditView general journalRequired ARequired B Required CPrepare a statement of Revenues, Expenditures, and Changes iEASTVILLE CITY LIBRARYLibrary Permanent FundStatement of Revenues, Expenditures, andChanges in Fund BalanceFor the Year Ended December 31, 2020RevenuesInvestment Income:Total RevenuesExpendituresCurrent:Total ExpendituresNet Change in Fund BalanceFund Balance, January 1Fund Balance, December 31$000

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, 2020 Debits Credits Cash $ 15,000 Investments 544,000 Additions to permanent endowments $ 529,500 Investment income 67,500 Expenditures—subscriptions

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, 2020 Debits Credits Cash $ 15,000 Investments 544,000 Additions to permanent endowments $ 529,500 Investment income 67,500 Expenditures—subscriptions

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter7: Accounting For Cash

Section: Chapter Questions

Problem 7SEA: CASH SHORT AND OVER ENTRIES Based on the following information, prepare the weekly entries for cash...

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Question

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, 2020	Debits		Credits
Cash	$	15,000
Investments		544,000
Additions to permanent endowments				$	529,500
Investment income					67,500
Expenditures—subscriptions		52,500
Net increase in fair value of investments					14,500
Accrued interest receivable		5,250
Accounts payable					5,250
	$	616,750		$	616,750

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 Subscriptions for any spendable fund balance).

Journal entry worksheet
Record the closing entry to transfer revenue and expenditure to fund balance.
Note: Enter debits before credits.
Event
a.
Record entry
Total Assets
Required A Required B
Required C
Prepare a balance sheet for the Library Permanent Fund (Use Restricted to Sub
EASTVILLE CITY LIBRARY
Library Permanent Fund
Total Liabilities
General Journal
Clear entry
Balance Sheet
As of December 31, 2020
Assets
Liabilities, Deferred Inflows, and Fund Balances
Liabilities
Fund Balances
Total Fund Balances
Total Liabilities and Fund Balances
$
$
0
0
0
0
1
Debit
Credit
View general journal
Required A
Required B Required C
Prepare a statement of Revenues, Expenditures, and Changes i
EASTVILLE CITY LIBRARY
Library Permanent Fund
Statement of Revenues, Expenditures, and
Changes in Fund Balance
For the Year Ended December 31, 2020
Revenues
Investment Income:
Total Revenues
Expenditures
Current:
Total Expenditures
Net Change in Fund Balance
Fund Balance, January 1
Fund Balance, December 31
$
0
0
0

Definition Definition Statement that shows the ending balance of all the ledger accounts of a firm at the end of the accounting period. The trial balance is prepared after all the entries have been posted to the ledger accounts and assists in preparing the final accounts of a firm.

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4. The Village of Seaside Pines prepared the following enterprise fund Trial Balance as of December 31, 2020, the last day of its fiscal year. The enterprise fund was established this year through a transfer from the General Fund. Accounts payable Accounts receivable Accrued interest payable Accumulated depreciation Administrative and selling expenses Allowance for uncollectible accounts Capital assets Cash Charges for sales and services Cost of sales and services Depreciation expense Due from General Fund Interest expense Interest revenue Transfer in from General Fund Bank note payable Supplies inventory Totals Debits $32,000 47,000 712,000 89,000 479,000 45,000 17,000 40,000 18,000 $1,479,000 Credits $ 96,000 28,000 45,000 12,000 550,000 4,000 119,000 625,000 $1,479,000 Required: a. Prepare the closing entries for December 31. b. Prepare the Statement of Revenues, Expenses, and Changes in Fund Net Position for the year ended December 31. c. Prepare the Net Position section of the…
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