Reference no: EM131267753
Annabelle Benton, great-granddaughter of the founder of the Town of Benton, made a cash contribution in the amount of $500,000 to be held as an endowment. To account for this endowment, the town has created the Alex Benton Park Endowment Fund. Under terms of the agreement, the town must invest and conserve the principal amount of the contribution in perpetuity. Earnings, measured on the accrual basis, must be used to maintain Alex Benton Park in an “attractive manner.” All changes in fair value are treated as adjust-ments of fund balance of the permanent fund and do not affect earnings. Earnings are transferred periodically to the Alex Benton Park Maintenance Fund, a special revenue fund. Information pertaining to transactions of the endowment and special revenue funds for the fiscal year ended June 30, 2014, follows: The contribution of $500,000 was received and recorded on December 31, 2013. On December 31, 2013, bonds having a face value of $400,000 were purchased for $406,300, plus three months of accrued interest of $6,000. A certificate of deposit with a face and fair value of $70,000 was also purchased on this date. The bonds mature on October 1, 2022 (105 months from date of purchase), and pay interest of 6 percent per annum semiannually on April 1 and October 1. The certificate of deposit pays interest of 4 percent per annum payable on March 31, June 30, September 30, and December 31. On March 31, 2014, interest on the certificate of deposit was received by the endowment fund and transferred to the Alex Benton Park Maintenance Fund. The April 1, 2014, bond interest was received by the endowment fund and transferred to the Alex Benton Park Maintenance Fund. On June 30, 2014, interest on the certificate of deposit was received and transferred to the Alex Benton Park Maintenance Fund. On June 30, 2014, the market value of the bonds was $409,600. The value of the certificate of deposit was unchanged. Required Prepare in general journal form the entries required in the Alex Benton Park Endowment Fund to record the transactions occurring during the fiscal year ending June 30, 2014, including all appropriate adjusting and closing entries. (Note: Ignore related entries in the governmental activities journal at the government-wide level and the Park Maintenance Fund.) Prepare the following financial statements: (1) A balance sheet for the Alex Benton Park Endowment Fund as of June 30, 2014. (2) A statement of revenues, expenditures, and changes in fund balance for the Alex Benton Park Endowment Fund for the year ended June 30, 2014.
|
Compute a schedule of operating cash flows
: BioCom, Inc. is weighing a proposal to manufacture and market a fiber-optic device that will continuously monitor blood pressure during cardiovascular surgery and other medical procedures in which precise, real-time measurements are critical. Compute..
|
|
Estimated factory overhead costs-direct labor hours
: Almer Company operates two factories. The company applies factory overhead to jobs on the basis of machine hours in Factory 1 and on the basis of direct labor hours in Factory 2. Estimated factory overhead costs, direct labor hours, and machine hours..
|
|
Compute their free cash flow
: Company A wants you to compute their free cash flow. They provide you with the following information: cash dividends $100, stock dividends 100 shares, sales of plant assets $50, cash flows from investing activities $475, purchase of plant assets $175..
|
|
Prepare schedule of expected cash disbursements
: You have been asked to prepare a December cash budget for Ashton Company, a distributor of exercise equipment. The following information is available about the company’s operations: Prepare a schedule of expected cash collections for December. Prepar..
|
|
Prepare in general journal form the entries required
: Annabelle Benton, great-granddaughter of the founder of the Town of Benton, made a cash contribution in the amount of $500,000 to be held as an endowment. To account for this endowment, the town has created the Alex Benton Park Endowment Fund. Prepar..
|
|
Statement of revenues-expenditures-changes in fund balance
: Annabelle Benton, great-granddaughter of the founder of the Town of Benton, made a cash contribution in the amount of $500,000 to be held as an endowment. To account for this endowment, the town has created the Alex Benton Park Endowment Fund. A bala..
|
|
In practice a market portfolio is often represented by
: In practice a market portfolio is often represented by:
|
|
Difference between the present value and future value
: The only difference between the present value and future value of a lump sum is the amount of interest that is earned in the intervening time span.
|
|
When designing audit program and the particular audit tests
: When designing the audit program and the particular audit tests, the auditor should keep in mind that _____. A cash dividend of $500 was declared and paid to stockholders simultaneously. The correct journal entry to record the declaration and payment..
|