Problem 3: Partial financial statement for a permanent fund

During 2021, 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 2021, the Villages finance director invested all $100,000 into various common stock and U.S treasury bill investments. During 2021, interest income earned from U.S. Treasury bills amounted to $5,000, and dividend income earned from equity investments amounted to $3,000. $7,500 of the income was received in cash, while the remaining $500 was accrued interest income at December 31, 2021, that will be received within 60 days from the end of 2021. The permanent fund transferred $7,500 of the earnings to the general fund to train firefighters. At December 31, 2021, the investments in the fund had a market value of $111,000.

Required: Prepare the fund balance section of the balance sheet for the permanent fund at December 31, 2021.

3. Fund balance section of the balance sheet for a permanent fund Amounts Fund balance: $ Total fund balance $