Business, 19.05.2020 18:03 ravenmcfarlandp07okx

Private Purpose Trust Fund Transactions
The City of Monroe Scholarship Foundation private-purpose trust fund had the following account balances on January 1, 2017
Debits Credits
Cash $ 50,500
Accrued Interest Receivable 7,500
Investments in Corporate Bonds 750,000
Net position Held in Trust $808,00
Totals $808,000 $808,000
Required
a. Open a general journal for the City of Monroe Community Foundation Trust Fund and record the following transactions for the year ending December 31, 2017
(1) On May 1, the first semiannual interest payment was received on the corporate bonds. The bonds pay 6 percent annual interest, semiannually on May 1 and November 1
(2) During the first half of the year, additional contributions from individuals and foundations amounted to $205,500, in cash. From these funds, $200,000 were invested in RST Corporation stock on June 15
(3) On November 1, the second semiannual interest payment was received from the investment in bonds
(4) On November 15, a dividend was declared by RST Corporation in the amount of $2,000 and was received in cash
(5) On December 1, RST Corporation stock was sold for $204,000 cash. Those funds were immediately invested in UVW Corporation stock.
(6) On December 15, cash scholarships in the amount of $48,000 were made to various college students
(7) On December 31, an accrual was made for year-end interest on the corporate bonds
(8) Also, on December 31, it was determined that the market value of the corporate bonds, exclusive of accrued interest, was $752,100 and that the market value of UVW Company stock was $199,000
b. Post the entries to the Community Foundation Trust ledger (t-accounts).
c. Prepare and post an entry closing all nominal accounts to Net position

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 21:00

The price of trade suppose that portugal and sweden both produce rye and wine. portugal's opportunity cost of producing a bottle of wine is 4 bushels of rye while sweden's opportunity cost of producing a bottle of wine is 10 bushels of rye. by comparing the opportunity cost of producing wine in the two countries, you can tell thatportugal/sweden has a comparative advantage in the production of wine.andportugal/sweden has a comparative advantage in the production of rye. suppose that portugal and sweden consider trading wine and rye with each other. portugal can gain from specialization and trade as long as it receives more rye for each bottle of wine it exports to sweden. similarly, sweden can gain from trade as long as it receives more bottles of wine for each bushel of rye it exports to portugal. based on your answer to the last question, which of the following prices of trade (that is, price of wine in terms of rye) would allow both sweden and portugal to gain from trade? a. 1 bushels of rye per bottle of wineb. 8 bushels of rye per bottle of winec. 9 bushels of rye per bottle of wined. 3 bushels of rye per bottle of wine

Answers: 3

Answer

Business, 21.06.2019 21:50

You have $22,000 to invest in a stock portfolio. your choices are stock x with an expected return of 11 percent and stock y with an expected return of 13 percent. if your goal is to create a portfolio with an expected return of 11.74 percent, how much money will you invest in stock x? in stock y?

Answers: 2

Answer

Business, 22.06.2019 03:00

Insurance companies have internal controls in place to protect assets, monitor the accuracy of accounting records and encourage operational efficiencies and adherence to policies. these internal controls are generally of two types: administrative controls and accounting controls. administrative controls are the policies and procedures that guide the daily actions of employees. accounting controls are the policies and procedures that delineate authorizations of financial transactions that are done, safeguard assets, and provide reports on the companyâ€™s financial status in a reliable and timely manner. internal controls should include both preventative and detective controls. the purpose of preventative controls is to stop problems and errors before they occur. detective controls identify problems after they have occurred. preventative controls are usually more effective at reducing problems, but they also tend to be more expensive. internal controls must be flexible to adjust for changes in laws and regulations in addition to adding new products or modifying current ones. companies must also do regular analyses to ensure that the benefits of implementing the controls are worth their costs. when concerned about paying unwarranted insurance claims which type of control would be useful?

Answers: 2

Answer

Business, 22.06.2019 14:10

Carey company is borrowing $225,000 for one year at 9.5 percent from second intrastate bank. the bank requires a 15 percent compensating balance. the principal refers to funds the firm can effectively utilize (amount borrowed − compensating balance). a. what is the effective rate of interest? (use a 360-day year. input your answer as a percent rounded to 2 decimal places.) b. what would the effective rate be if carey were required to make 12 equal monthly payments to retire the loan?

Answers: 1

Answer

You know the right answer?

Private Purpose Trust Fund Transactions
The City of Monroe Scholarship Foundation private-pur...

Questions