Prepare any closing entries necessary at year-end. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the library permanent fund. Prepare a balance sheet for the Library Permanent Fund (Use Restricted to Library for any spendable fund balance).
Prepare any closing entries necessary at year-end. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the library permanent fund. 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
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1
Transcribed Image Text:Exercise 5-6 (Algo)
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
$8,500
518,000
39,500
2,000
$568,000
Credits
$510,000
48,000
8,000
2,000
$568,000
Required:
a. Prepare any closing entries necessary at year-end.
b. epare 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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