Question

On July 1, 2016, the Morgan County School District received a $54,000 gift from a local civic organization with the stipulation that, on June 30 of each year, $3,900 plus any interest earnings on the unspent principal be awarded as a college scholarship to the high school graduate with the highest academic average. A private-purpose trust fund, the Civic Scholarship Fund, was created.

1. On July 1, 2016, the gift was received and immediately invested.
2. On June 30, 2017, $3,900 of the principal was converted into cash. In addition, $2,900 of interest was received.
3. On June 30, the $6,800 was awarded to a student who had maintained a 4.0 grade point average throughout each of her four years.
4. The nominal accounts were closed.
   

Required:
a. Record the above transactions on the books of the Civic Scholarship Fund.
b. Prepare a Statement of Changes in Fiduciary Net Position for the Civic Scholarship Fund for the year ended June 30, 2017.

Answer 1

Solution Date Accounts Debit - Gredit la cash 54000 Additions - Conterbutions 54000 54000 Investments Cash 54000 Cash 6800 7900 Addetions - Investment car ning Interest Investments 3900 6800 2900 Deductions-Scholarship awards 6800 Cash Addetions contributionę 54000 Additions - Investment earnings 2 - Interest" Deductions - scholarship awarde fiduclary net position - Restricted for Scholarship awards 6800 50100

Morgan country school Distrect Additions: Contrebutions 54000 Interest Income 2900 Total 56900 Deductions: Scholarship alourds - 6800 charge in fiduciary Net position 50100 fiduciary Net position begining fiduelary net position ending 50100