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On July 1 , 2 0 1 9 , the City of Belvedere accepted a gift of cash in the amount of $ 3 ,
On July the City of Belvedere accepted a gift of cash in the amount of $ from a number of individuals and foundations and signed an agreement to establish a privatepurpose trust. The $ and any additional gifts are to be invested and retained as principal. Income from the trust is to be distributed to community nonprofit groups as directed by a Board consisting of city officials and other community leaders. The agreement provides that any increases in the market value of the principal investments are to be held in trust; if the investments fall below the gift amounts, then earnings are to be withheld until the principal amount is reestablished. The following events and transactions occurred during the fiscal year ended June Record them in the Belvedere Community Trust Fund: On July the original gift of cash was received. On August $ in XYZ Company bonds were purchased at par plus accrued interest $ The bonds pay an annual rate of percent interest semiannually on April and October On August $ in ABC Company common stock was purchased. ABC normally declares and pays dividends semiannually, on January and July On October the first semiannual interest payment $ was received from XYZ Company. Note that part of this is for accrued interest due at the time of purchase; the remaining part is an addition that may be used for distribution. On January a cash dividend was received from ABC Company in the amount of $ On March the ABC stock was sold for $ On the same day, DEF Company stock was purchased for $ On April the second semiannual interest payment was received from XYZ Company. During the month of June, distributions were approved by the Board and paid in cash in the amount of $ Administrative expenses were recorded and paid in the amount of $ An accrual for interest on the XYZ bonds was made as of June As of June the fair value of the XYZ bonds, exclusive of accrued interest, was determined to be $ The fair value of the DEF stock was determined to be $ Closing entries were prepared. Required: a The above events and transactions occurred during the fiscal year ended June Record them in the Belvedere Community Trust Fund. b Prepare a Statement of Changes in Fiduciary Net Position for the Belvedere Community Trust Fund and a Statement of Fiduciary Net Position. PrevQuestion of Total of Visit question mapNext
On July the City of Belvedere accepted a gift of cash in the amount of $ from a number of individuals and foundations and signed an agreement to establish a privatepurpose trust. The $ and any additional gifts are to be invested and retained as principal. Income from the trust is to be distributed to community nonprofit groups as directed by a Board consisting of city officials and other community leaders. The agreement provides that any increases in the market value of the principal investments are to be held in trust; if the investments fall below the gift amounts, then earnings are to be withheld until the principal amount is reestablished.
The following events and transactions occurred during the fiscal year ended June Record them in the Belvedere Community Trust Fund:
On July the original gift of cash was received.
On August $ in XYZ Company bonds were purchased at par plus accrued interest $ The bonds pay an annual rate of percent interest semiannually on April and October
On August $ in ABC Company common stock was purchased. ABC normally declares and pays dividends semiannually, on January and July
On October the first semiannual interest payment $ was received from XYZ Company. Note that part of this is for accrued interest due at the time of purchase; the remaining part is an addition that may be used for distribution.
On January a cash dividend was received from ABC Company in the amount of $
On March the ABC stock was sold for $ On the same day, DEF Company stock was purchased for $
On April the second semiannual interest payment was received from XYZ Company.
During the month of June, distributions were approved by the Board and paid in cash in the amount of $
Administrative expenses were recorded and paid in the amount of $
An accrual for interest on the XYZ bonds was made as of June
As of June the fair value of the XYZ bonds, exclusive of accrued interest, was determined to be $ The fair value of the DEF stock was determined to be $
Closing entries were prepared.
Required:
a The above events and transactions occurred during the fiscal year ended June Record them in the Belvedere Community Trust Fund.
b Prepare a Statement of Changes in Fiduciary Net Position for the Belvedere Community Trust Fund and a Statement of Fiduciary Net Position.
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