Question
3. Accounting for a permanent fund Scenario: Mr. Pedro Donante donated the sum of $ 200,000 to the city of Loma Vista for the maintenance
3. Accounting for a permanent fund
Scenario:
Mr. Pedro Donante donated the sum of $ 200,000 to the city of Loma Vista for the maintenance of a public park. He established by legal document that the principal be invested, but it could never be spent. Only the winnings can be spent. The city established a permanent fund. The proceeds will be transferred to a "Special Revenue Fund."
to. Record the cash received by the donor
b. The $ 200,000 invested in securities.
c. During the year, $ 6,000 of earned income was received on the investment.
3. Accounting for a permanent fund
Scenario:
Mr. Pedro Donante donated the sum of $ 200,000 to the city of Loma Vista for the maintenance of a public park. He established by legal document that the principal be invested, but it could never be spent. Only the winnings can be spent. The city established a permanent fund. The proceeds will be transferred to a "Special Revenue Fund."
to. Record the cash received by the donor
b. The $ 200,000 invested in securities.
c. During the year, $ 6,000 of earned income was received on the investment.
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163
