Dr. Theodore Dough made a $ 500,000 gift to the Village of Radnor. Dr. Dough stipulated that

Question:

Dr. Theodore Dough made a $ 500,000 gift to the Village of Radnor. Dr. Dough stipulated that the corpus of the gift ( together with all investment gains and losses) was to remain intact in perpetuity and that all earnings on the investments ( after paying expenses for administering the gift) were to be used solely for the purchase of books by the Teddy Library Special Revenue Fund. Record the following transactions in the Dough Permanent Fund, and prepare the required fund financial statements for the year ended December 31, 2012.

1. Dough donated $ 500,000 to the Village of Radnor.

2. The entire gift was immediately invested in various securities.

3. The investments earned $ 30,000 in dividends and interest during the year.

4. The Permanent Fund paid the village $ 2,000 for administrative expenses.

5. In accordance with the terms of the gift, $ 25,000 was sent to the Teddy Library Special Revenue Fund.

6. At year- end, the investments held by the Permanent Fund had a fair market value of $ 508,000.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Perpetuity
Perpetuity refers to payments that are made without an end or maturity date. A perpetuity is classified as an annuity, which is something that earns a dividend or receives a payment at a regularly scheduled interval, generally yearly. So, how...

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Answer rating: 66% (12 reviews)

1 Cash 500000 Revenues gift 500000 To record gift to Dough Permanent Fund 2 Investments 500000 Cash ...View the full answer

Answered By

Asim farooq

I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening. My Expert Service Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities

4.40+ 65+ Reviews 86+ Question Solved

Related Book For book-img-for-question

Introduction to Governmental and Not for Profit Accounting

ISBN: 978-0132776011

7th edition

Authors: Martin Ives, Terry K. Patton, Suesan R. Patton

See More Books

Question Posted: Dec 30, 2014 04:52 AM

See More Questions

Dr. Theodore Dough made a $ 500,000 gift to the Village of Radnor. Dr. Dough stipulated that

Question:

Step by Step Answer:

1 Cash 500000 Revenues gift 500000 To record gift to Dough Permanent Fund 2 Investments 500000 Cash ...View the full answer

Introduction to Governmental and Not for Profit Accounting

Students also viewed these Accounting questions