Prepare a separate statement of revenues

Assignment Help Accounting Basics

Reference no: EM131525571

Question: 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: EM131525571

Questions Cloud

Discuss about the modern practice of herbalism : Discuss an herbal elder or ancestor who is an influence to the modern practice of herbalism, or your personal study.

Why do corporations issue such stock : What is callable preferred stock? Why do corporations issue such stock? Explain the different types of stocks and their different features.

Record the transaction on the books of the debt service fund : The Town of McHenry has $6,000,000 in general obligation bonds outstanding and maintains a single debt service fund for all debt service transactions.

What media are used in your community to promote health : What media are used in your community to promote health and prevent illness or disease

Prepare a separate statement of revenues : 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.

Discuss possible barriers to health care : Discuss possible barriers to health care this population group may face. How will you intervene to eliminate or at least minimize these barriers

Describe the most likely event that led to each of postings : Appearing below is the subsidiary ledger for the public safety department of the City of Boone. After the first month of the year.

What role the community health nurse might play : Describe the major health concerns of this woman and what role the community health nurse might play in this situation

Implications for performance management : The purpose of this assignment is to display lessons learned about designing a change management plan and the implications for performance management.

User Account

All Pages