City of sharpesburg-library book permanent fund

Assignment Help Accounting Basics

Reference no: EM1356611

Complete in excel in proper format with no lines in the journal entry.

The City of Sharpesburg received a gift of $950,000 from a local resident on June 1, 2012, and signed an agreement that the funds would be invested permanently and that the income would be used to purchase books for the city library.
The following transactions took place during the year ended December 31, 2012:

1. The gift was recorded on June 1.

2. On June 1, ABC Company bonds were purchased as investments in the amount of $950,000 (par value). The bonds carry an annual interest rate of 6 percent, payable semiannually on December 1 and June 1.

3. On December 1, the semiannual interest payment was received.

4. From December 1 through December 31, $27,700 in book purchases were made; full payment was made in cash.

5. On December 31, an accrual was made for interest.

6. Also, on December 31, a reading of the financial press indicated that the ABC bonds had a fair value of $966,000, exclusive of accrued interest.

7. The books were closed.

Required:

a. Record the transactions on the books of the Library Book Permanent Fund.

b. Prepare a separate Statement of Revenues, Expenditures, and Changes in Fund Balances for the Library Book Permanent Fund for the Year Ended December 31, 2012.

Reference no: EM1356611

Questions Cloud

Calculate pay for the bond : Suppose you are planning about the purchase of a $1000 par value bond that pays interest of $70 each six months and has ten years to go before it matures.

Show the distinctions between costs, price and profit : Show the distinctions between costs, price, and profit -description of cost analysis and price analysis in the discussion

Moderate-discrepancy hypothesis : Identify and describe the types of educational materials the moderate-discrepancy hypothesis predicts are most likely to hold children's attention?

Ways to ensure that website is easy to navigate : A good practice would be to spread the content out among several pages. What are some ways to ensure that your website is easy to navigate?

City of sharpesburg-library book permanent fund : Prepare a separate Statement of Revenues, Expenditures, and Changes in Fund Balances for the Library Book Permanent Fund for the Year Ended December 31, 2012.

Determine the portfolio required rate of return : The risk free rate is 6 percent and the portfolio's required rate of return is 12.5 percent. The manager would like to sell all of the holdings of stock 1 and use the proceeds to purchase more shares of stock 4.

Explain what are the benefits/downsides of creating : Explain What are the benefits/downsides of creating manufacturing operations outside the United states and What are the advantages/disadvantages of just-in-time manufacturing?

What will be the induced emf in the short coil during time : An infinite line of charge has linear charge density 5.50x 10-12 C/m. A proton (mass 1.67x 10-27 kg, charge +1.60 10-19 C) is 18.0 cm from line and moving directly toward the line at 1.20 x10^3 m/s. How close does the proton get to the line of char..

Show where does decision making bias come from : Show bias and the impact on decision making - Show where does decision making bias come from

User Account

All Pages