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Help with No. 10 and 11 please. Part 1 7-C. Part 1. Private Purpose Trust Fund Transactions The City of Monroe Scholarship Foundation private-purpose trust
Help with No. 10 and 11 please.
Part 1 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, 2020: 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. Record the following transactions in the general journal of the City of Monroe Community Foundation Trust Fund for the year ending December 31, 2020 (1) On May 1, the first semiannual interest payment ($22,500) 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 $211,000, 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 ($22,500) 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 $51,000 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 UVW 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. Private Purpose Entries Private Purpose T Accounts Record the transactions in the general journal of the City of Monroe Community Foundation Trust Fund for the year ending December 31, 2020. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) No Transaction General Journal Debit Credit 1 01 22,500 Cash Additions Investment Earnings-Interest Accrued Interest Receivable 15,000 7,500 2 2a Cash > 211,000 > Additions-Contributions 211,000 3 2b 200,000 Investment in RST Corporation Stock Cash 200,000 4 03 22.500 Cash Additions Investment Earnings-Interest 00 22,500 5 04 2,000 Cash Additions-Investment Earnings-Dividends olo 2.000 6 5a Cash 204,000 Investment in RST Corporation Stock > 200,000 Additions-Investment Earnings-Net Increase (Decrease) in Fairy 4,000 7 5b 204,000 Investment in UVW Corporation Stock Cash 204.000 8 06 Deductions-Distribution to Nonprofit Organizations 51,000 >> Cash 51,000 9 07 7,500 > Accrued Interest Receivable Additions-Investment Earnings-Interest 7,500 10 08 > 2,100 Investment in Corporate Bonds Additions-Investment Earnings-Net Increase (Decrease) in Fair Cash 1.200 900 11 CI. 5,000 Additions-Investment Earnings-Net Increase (Decrease) in Fair Val Investment in UVW Corporation Stock 5,000 Record the investment of funds in UVW Corporation stock which was made immediately. Record the entry for $51,000 cash scholarships were made to various college students. 9 Record the entry for accrual was made for year-end interest on the corporate bonds. 10 Record the entry for $7,750 of the market value of investments in bonds increased; the market value of investments in stocks decreased by $1,200. Record the Changes in Fiduciary Net positionStep by Step Solution
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