Question: Use the Excel template to complete this assignment and return it to me. Do NOT add or delete rows from the template. If you do
Use the Excel template to complete this assignment and return it to me.
Do NOT add or delete rows from the template. If you do your answer will not match with the return solution back to you for reference.
Note that there is only one Excel template for this week. There is NO need for you to submit a Word document.
Trust Fund Worksheet
Background
An inter vivos trust was created by Isaac Posney. Isaac owned a large department store in Juggins, Utah. Adjacent to the store, Isaac also owned a tract of land that was used as an extra parking lot when the store was having a sale or during the Christmas season. Isaac expected the land to appreciate in value and eventually be sold for an office complex or additional stores. Isaac placed the land into a charitable lead trust, which would hold the land for ten years until Isaac's son would turn 21. At that time, title would be transferred to the son. The store will pay rent to use the land during the interim. The income generated each year from this usage will be given to a local church. The land was currently valued at $416,000.
During the first year of this arrangement, the trustee recorded the following cash transactions:
| Cash inflow: |
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| Rental income | $78,000 |
| Cash outflows: |
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| Insurance | $ 5,200 |
| Property taxes | 7,800 |
| Paving (considered an extraordinary repair) | 5,600 |
| Maintenance | 10,400 |
| Distribution to income beneficiary | 39,000 |
Instructions
Prepare all required journal entries on the Trust Fund table for this trust fund including the entry to create the trust.
| Land |
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| Trust Principal |
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| Cash Income |
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| Trust Income |
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| Insurance Expense Income |
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| Cash Income |
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| Property Taxes Expense Income |
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| Cash Income |
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| Land Improvements |
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| Cash Income |
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| Due from Trust Principal |
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| Due to Trust Income |
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| Maintenance Expense Income |
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| Cash Income |
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| Equity in Income: Beneficiary |
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| Cash Income |
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Do NOT use pdf format because I am not able to make comment, save and return it back to you. So you will not earn any point for submitting your assignment in pdf format.
Summary:
- Use the attached Excel template to submit yourassignment. When I said do not make any changes I means do not add, delete,move any rows or columns.
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