Record Entries and Prepare Statements for a Private Purpose Trust Fund. Reiver C
ID: 2578512 • Letter: R
Question
Record Entries and Prepare Statements for a Private Purpose Trust Fund.
Reiver County School District accepts donations that are used to provide awards to graduating seniors. Record the following transactions in the Reiver County School District Private Purpose Trust Fund - Awards Fund. Also, prepare a statement of changes in fiduciary net position for the Fund for the year ended December 31, 20XX. This is the first year of operation for the Reiver County Private Purpose Trust Fund - Awards Fund.
a. Jane Bandera, noted philanthropist, donates marketable securities worth $600,000 to the District, stipulating that all earnings on the securities be used for awards to graduates.
b. The District receives dividends on the securities in the amount of $15,000.
c. The District makes various awards to graduating seniors in the amount of $20,000.
d. When the District prepares financial statements at the end of the year, the marketable securities have a fair value of $590,000.
GENERAL JOURNAL Page
Date
Description of entry
Post Ref
Debit
Credit
REIVER COUNTY SCHOOL DISTRICT
Private Purpose Trust Fund – Awards Fund
Statement of Changes in Fiduciary Net Position
For the Year Ended December 31, 20XX
Date
Description of entry
Post Ref
Debit
Credit
Explanation / Answer
Reiver County School District Reiver County School District General Journal page Private purpose trust fund - Awards Fund Date Description of entry Post ref Debit Credit Statement of changes in fiduciary net position for the year ended 31-Dec-17 $ $ 31-Dec-17 Balance at beginning of year 600000 a Securities 600000 Dividends received during the year 15000 Fund 600000 Balance at end of year 615000 (Recording the receipt of securitied in the fund for awards to graduates Change in market value of securities -10000 by Jane Bandera, noted philanthropist) Awards presented during the year -20000 Value of fund at the end of the year 585000 31-Dec-17 Cash 15000 Fund 15000 (Recording the receipt of dividends on securities)
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