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ecord the following journ ent es

ecord the following journ ent es

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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Journal entries for a Private-Purpose Trust Fund Record the following journal entries in the Children's Book Fund, a city's Private-Purpose Trust Fund that supplies books for children in nongovernmental nonprofit women's shelters. 1. A citizen establishes a trust fund, which is a fiduciary component unit of the city, with a $1,300,000 donation. The trust specified that this money was to be used to acquire children's books for local nonprofit women's shelters. 2. The fund invested $1,092,000 in CDs. 3. Books costing $117,000 were acquired. 4. Interest income of $52,000 was received in cash from the CDs. 5. The accounts were closed for the year. Prepare journal entries for the above listed transactions and events. Account 1. To record establishment of trust fund 2. To record investment in CDs. 3. To record purchase of books. 4. To record interest on CDs. 5. To close accounts for the year. Debit 0 0 0 0 0 0 OO 0 0 0 0 O O O 0 C
Transcribed Image Text:Journal entries for a Private-Purpose Trust Fund Record the following journal entries in the Children's Book Fund, a city's Private-Purpose Trust Fund that supplies books for children in nongovernmental nonprofit women's shelters. 1. A citizen establishes a trust fund, which is a fiduciary component unit of the city, with a $1,300,000 donation. The trust specified that this money was to be used to acquire children's books for local nonprofit women's shelters. 2. The fund invested $1,092,000 in CDs. 3. Books costing $117,000 were acquired. 4. Interest income of $52,000 was received in cash from the CDs. 5. The accounts were closed for the year. Prepare journal entries for the above listed transactions and events. Account 1. To record establishment of trust fund 2. To record investment in CDs. 3. To record purchase of books. 4. To record interest on CDs. 5. To close accounts for the year. Debit 0 0 0 0 0 0 OO 0 0 0 0 O O O 0 C
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