Baird County maintains an investment trust fund for the School District and the Town of Bairdville...

50.1K

Verified Solution

Question

Accounting

Baird County maintains an investment trust fund for the SchoolDistrict and the Town of Bairdville (separate governments).Presented below is the preclosing trial balance for the investmenttrust fund, a private-purpose trust fund.
Trial Balance—December 31, 2017 Debits Credits
Accrued Interest Receivable $ 23,000
Cash 38,300
Deposits—School District $ 459,600
Deposits—Town of Bairdville 336,200
Decrease in Fair Value of Investments (bonds) 15,300
Interest Income 91,800
Investments—Corporate Bonds 1,576,000
Investments—U.S. Treasury Securities 1,530,000
Net Position held in trust—School District (Jan. 1) 1,530,000
Net Position held in trust—Town of Bairdville (Jan. 1) 765,000
$ 3,182,600 $ 3,182,600

Investment earnings are distributed among the School District andTown in proportion to the amounts contributed (two-thirds to theSchool District and one-third to the Town).

Required:
Prepare the year-end closing entries and a Statement of Changes inFiduciary Net Position for the year ended December 31,2017.

Answer & Explanation Solved by verified expert

4.1 Ratings (597 Votes)

Answer JOURNAL ENTRY Particulars Debit Credit Deposits from School Board Ac Dr 459600 Deposits from Town of Bairdville Ac Dr 336200 Interest income Ac Dr 91800 To Decrease in fair value of investments Ac See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Trial Balance—December 31, 2017	Debits		Credits
Accrued Interest Receivable	$	23,000
Cash		38,300
Deposits—School District			$	459,600
Deposits—Town of Bairdville				336,200
Decrease in Fair Value of Investments (bonds)		15,300
Interest Income				91,800
Investments—Corporate Bonds		1,576,000
Investments—U.S. Treasury Securities		1,530,000
Net Position held in trust—School District (Jan. 1)				1,530,000
Net Position held in trust—Town of Bairdville (Jan. 1)				765,000
	$	3,182,600	$	3,182,600