Question
On July 1, 2017, the City of Sunbury received a gift of bonds issued by Apex Company with a face value of $1,600,000. Income is
On July 1, 2017, the City of Sunbury received a gift of bonds issued by Apex Company with a face value of $1,600,000. Income is to be used to make awards for civic achievements. As of the date of the gift, the securities had a market value of $1,668,000. Included in this amount is accrued interest of $18,000. The bonds carried an annual interest rate of 6%, payable semiannually on April 1 and October 1. During the fiscal year ended June 30, 2018, the following transactions took place:
- The gift was received.
- On October 1, $48,000 in interest was received.
- On April 1, $48,000 in interest was received.
- On April 1, immediately after the receipt of interest, the Apex Company bonds were sold for $1,662,000. The proceeds were invested in Calorito Company bonds, which also carried a 6% annual interest rate, payable semiannually on April 1 and October 1. The bonds were purchased at par value.
- On June 30, 2018, accrued interest on the Calorito Company bonds was recognized.
- On June 30, 2018, awards were made in the amount of $60,000.
- As of June 30, 2018, the fair value of the Calorito Company bonds was $1,664,000, exclusive of accrued interest.
Required:
Using the templates and trial balance provided, prepare a statement of fiduciary net position for the City of Sunbury private-purpose trust fund as of June 30, 2018.
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