During 2022, a retired fire department employee donated $100,000 to the Village of Lakeview. The donor stipulated that the gift be invested permanently and that the earnings from the gift be used to train firefighters in the most modern techniques to fight fires. During 2022, the Village’s finance director invested all $100,000 into various common stock and U.S treasury bill investments. During 2022, interest income earned from U.S. Treasury bills amounted to $5,000, and dividends received from equity investments amounted to $3,000. $7,500 of the $8,000 of investment income was received in cash. The remaining $500 was accrued interest income at December 31, 2022, and it will be received within 60 days from the end of 2022. The permanent fund expended $6,500 of the investment income to train firefighters during 2022. At December 31, 2022, the investments in the fund had a market value of $117,000.

Required: Prepare the fund balance section of the balance sheet for the permanent fund at December 31, 2022.

Answer rating: 100% (QA)

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