7-C. Part 1. Private Purpose Trust Fund Transactions The City of Monroe Scholarship Foundation private-purpose trust fund had the following account balances on January 1, 2017: Cash Accrued Interest Receivable Investments in Corporate Bonds Net position Held in Trust Totals Debits Credits $ 50,500 7,500 750,000 $808,000 $808,000 $808,000 Required: a. Open a general journal for the City of Monroe Community Foundation Trust Fund and record the following transactions for the year ending December 31, 2017: (1) On May 1, the first semiannual interest payment was received on the corporate bonds. The bonds pay 6 percent annual interest, semiannually on May 1 and November 1. (2) During the first half of the year, additional contributions from individuals and foundations amounted to $205,500, in cash. From these funds, $200,000 were invested in RST Corporation stock on June 15. (3) On November 1, the second semiannual interest payment was received from the investment in bonds. (4) On November 15, a dividend was declared by RST Corporation in the amount of $2,000 and was received in cash. (5) On December 1, RST Corporation stock was sold for $204,000 cash. Those funds were immediately invested in UVW Corporation stock. (6) On December 15, cash scholarships in the amount of $48,000 were made to various college students. (7) On December 31, an accrual was made for year-end interest on the corporate bonds. (8) Also, on December 31, it was determined that the market value of the corporate bonds, exclusive of accrued interest, was $752,100 and that the market value of UWW Company stock was $199,000. b. Post the entries to the Community Foundation Trust ledger (t-accounts). c. Prepare and post an entry closing all nominal accounts to Net position. No Transaction General Journal Debit Credit 1 01 Cash 22,500 Additions-Investment Earnings-Interest Accrued Interest Receivable 15,000 7,500 2 2a Cash 205,500 Additions-Contributions-Individuals & Foundations 205,500 3 2b 200,000 Investment in RST Corporation Stock Cash 200,000 4 03 22,500 Cash Additions-Investment Earnings-Interest 22,500 5 04 2,000 Cash Additions-Investment Earnings-Dividends 2,000 6 5a Cash 204,000 200,000 Investment in RST Corporation Stock Additions-Investment Earnings-Net Increase (Decrease) in Fair 4,000 7 5b 204,000 Investment in UVW Corporation Stock Cash 204,000 co 06 48,000 Deductions-Distribution to Nonprofit Organizations Cash 48,000 9 07 7,500 Accrued Interest Receivable Additions-Investment Earnings-Interest 7,500 10 08 Investment in Corporate Bonds 2,100 2,100 11 CI. Additions-Investment Earnings-Net Increase (Decrease) in Fair Val 2,000 Additions Investment Earnings-Interest Answer is not complete. Complete this question by entering your answers in the tabs below. Private Purpose Entries Private Purpose T Accounts Pension Trust Pension Trust Entries T Accounts Stmt of Changes Stmt of Net Position Post the entries to the Community Foundation Trust ledger (T-accounts). Cash Accrued Interest Receivable Beg. bal 50,500 Beg. bal 7 7,500 7,500 1 204.000 5 48.000 6 3 2a 1 22.500 205,500 22.500 2.000 204.000 200.000 2b 4 IS 5 End. bal 55.000 End. bal 0 Investment In RST Stock Investment in Corporate Bonds 750.000 Beg bal Beg bal 8 2.100 200.0005 End. bal 752.100 End. bal 200,000 Investment in UVW Stock Net Position (beginning) 808,000 Beg bal Beg. bal 5 204.000 End. bal 204.000 End. bal 808.000 Additions Contributions Additions - Investment Earnings - Interest Beg bal Beg. bal 205,500 2a 15.0001 22.5003 7,500 7 OOO End, bal 205,500 End. bal 45.000 Additions - Investment Earnings - Dividends Additions - Investment Earnings - AFMV Beg. bal Beg. bal 2.00014 4.0005 End. bal 2.000 End. bal 4.000 Deductions Distributions To NFPS Net Position Beg. bal Beg bal 16 48.000 Preclosing 48,000 0
