Reference no: EM133051789
Question - Jacqueline Ponce de Leon, a descendent of Juan Ponce de Leon, made a cash contribution of $2,700,000 to the City of Fountains to create and maintain a large fountain in front of City Hall in honor of her ancestor. The city created the Ponce de Leon Endowment Fund to account for the endowment, which requires the city to invest and conserve the principal amount of the contribution in perpetuity. Earnings must be used to maintain and operate the fountain in a "pristine manner." Any changes in fair value are treated as adjustments of the fund balance of the permanent fund and do not affect earnings. Earnings are transferred each year to the Ponce de Leon Fountain Maintenance Fund, a special revenue fund. Information pertaining to transactions of the endowment and special revenue funds for the fiscal year ended June 30, 2020, follows.
1) The contribution of $2,700,000 was received and recorded on December 31, 2019.
2) On December 31, 2019, the city purchased a certificate of deposit in the amount of $2,100,000 that yields 6 percent per year payable on June 30 and December 31. On that date, the city also purchased bonds having a face value of $510,000 for $527,300. The bonds mature on July 1, 2028 (102 months from the date of purchase) and pay interest of 7 percent per year semiannually on June 30 and December 31. Assume the interest payment for December 31, 2019, was paid to the previous owner prior to the city's purchase of the bonds.
3) On June 30, 2020, interest on the certificate of deposit and the bonds was received by the endowment fund.
4) Interest from both the certificate of deposit and the bonds were transferred to the Ponce de Leon Fountain Maintenance Fund.
5) On June 30, 2020, the market value of the bonds was $531,700. The value of the certificate had not changed.
Required - Prepare in general journal format the entries required in the Ponce de Leon Endowment Fund to record the transactions occurring during the fiscal year ending June 30, 2020, including all appropriate adjusting and closing entries.
|
Determine where each ethical guideline will apply
: Determine where each ethical guideline will apply - Implement them as a leader. Remember, leadership has nothing to do with your job title
|
|
Define three ethical theories
: A Volkswagen engineer was directed to create defeat device software to temporarily cheat on emissions tests by turning pollution controls on only when being ins
|
|
What is chicago homicide rate
: The number of homicides in Chicago in 2010 was 435. Chcago had a total population of 2,695,598 in 2010. What is Chicago's homicide rate
|
|
Advantages of team-based reward systems
: Discuss the link between a badly designed reward system, staff morale, and high turnover. Find five reasons why such an ineffective system can lead to low moral
|
|
Prepare in general journal format the entries required
: Prepare in general journal format the entries required in the Ponce de Leon Endowment Fund to record the transactions occurring during the fiscal year
|
|
What is the minimum cost of assignment
: A company has five jobs V, W, X, Y and Z and five machines A, B, C, D and E. The given matrix shows the cost in birr of assigning a job to a machine.
|
|
Explain anshen concept of social contract
: Consider the contrasting points of view set forth by Melvin Anshen and Milton Friedman on the social responsibility of corporations and corporate executives.
|
|
Find the present value of these cash flows
: You are going to withdraw $73,511 every year at the beginning of the year for the next 23 years starting from today. Find the present value of these cash flows
|
|
What would you suggest to paul pogba based on your analysis
: What would you suggest to Paul Pogba based on your analysis regarding the new gold mine? Whether should they take this project
|