At the start of 2020, a resident of the City of LaVerada donated $2.5 million to the
Question:
At the start of 2020, a resident of the City of LaVerada donated $2.5 million to the LaVerada School District. The donor specified that the entire $2.5 million be invested, and the investment income was used to provide tutoring services for high school students. Investments were made, and the 2020 investment income was $100,000. Administrative costs related to investing activities were $2,000. The school district started a tutoring program, and spent $15,000 on supplies, $25,000 for facilities rent, and $35,000 on tutoring. The investments are worth $2,580,000 at the end of 2020.
Required
The drop-down options are as follows: Cash-principal, Fund balance-non spendable, Investments-principal, Cash-income, Investment income, Investments-income, Expenditures, Unrealized gain on investment, and Unrealized loss on investment.
Record the events described above in a permanent fund. Include closing entries.
Government and Not for Profit Accounting Concepts and Practices
ISBN: 978-1118155974
6th edition
Authors: Michael H. Granof, Saleha B. Khumawala