Baird County maintains an investment trust fund for the School District and the Town of Bairdville (separate
Question:
Baird County maintains an investment trust fund for the School District and the Town of Bairdville (separate governments). Presented below is the preclosing trial balance for the investment trust fund, a private-purpose trust fund.
Trial Balance-December 31, 2017 | Debits | Credits |
Accrued Interest Receivable | $20,000 | |
Cash | 33,300 | |
Deposits-School District | $399,600 | |
Deposits-Town of Bairdville | $292,200 | |
Decrease in Fair Value of Investments (bonds) | 13,300 | |
Interest Income | 79,800 | |
Investments-Corporate Bonds | 1,370,000 | |
Investments-U.S. Treasury Securities | 1,330,000 | |
Net position held in trust-School District (Jan. 1) | 1,330,000 | |
Net Position held in trust-Town of Bairdville (Jan. 1) | 665,000 | |
$2,766,600 | $2,766,600 |
Investment earnings are distributed among the School District and Town in proportion to the amounts contributed (two-thirds to the School District and one-third to the Town).
Required:
Prepare the year-end closing entries and a Statement of Changes in Fiduciary Net Position for the year ended December 31, 2017.
Essentials of Accounting for Governmental and Not-for-Profit Organizations
ISBN: 978-0073527055
10th Edition
Authors: Paul A. Copley