Question
Baird County maintains an investment trust fund for the School District and the Town of Bairdville (separate governments). Presented below is the preclosing trial balance
Baird County maintains an investment trust fund for the School District and the Town of Bairdville (separate governments). Presented below is the preclosing trial balance for the investment trust fund, a private-purpose trust fund.
| Trial Balance-December 31, 2017 | Debits | Credits |
| Accrued Interest Receivable | $20,000 |
|
| Cash | 33,300 |
|
| Deposits-School District |
| $399,600 |
| Deposits-Town of Bairdville |
| $292,200 |
| Decrease in Fair Value of Investments (bonds) | 13,300 |
|
| Interest Income |
| 79,800 |
| Investments-Corporate Bonds | 1,370,000 |
|
| Investments-U.S. Treasury Securities | 1,330,000 |
|
| Net position held in trust-School District (Jan. 1) |
| 1,330,000 |
| Net Position held in trust-Town of Bairdville (Jan. 1) |
| 665,000 |
|
| $2,766,600 | $2,766,600 |
Investment earnings are distributed among the School District and Town in proportion to the amounts contributed (two-thirds to the School District and one-third to the Town).
Required:
Prepare the year-end closing entries and a Statement of Changes in Fiduciary Net Position for the year ended December 31, 2017.
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