Question
(1) A wealthy businessman donated $50 in marketable securities to the District to establish a fund to help financially distressed park maintenance retiree. Per the
(1) A wealthy businessman donated $50 in marketable securities to the District to establish a fund to help financially distressed park maintenance retiree. Per the trust agreement only the interest and dividends from the securities can be distributed to recipients. The recipients will be selected by a committee of board members from the businessman's company.
(2) The district received $5 in interest from the marketable securities. The district paid $4 from the trust to cover the living expense of a group of park retirees who were selected by the committee.
Requirement:
Prepare appropriate journal entries to record the transactions in individual funds. Governmental funds are accounted for on a modified accrual basis; proprietary funds on a full accrual basis.
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