A private purpose trust fund is built for private purposes in which the gift received (Donation), called principal and interest amount can be spent on specific activities as directed. This is the slight difference between Private purpose trust fund and public purpose trust fund. In public purpose trust fund there is restriction on principal amount spending.
If the primary beneficiaries in a fund is government and citizens, then it will be a public purpose trust fund.
The accounting of this fund is quite similar to investment fund.
There is Additions and Deductions in the statement of Changes in Net Asset and at last we find Net Asset position.
A)
Journal Entries for Transaction.:
B)
Statement of Changes in Fiduciary Net Asset.:
C) Statement of Fiduciary Net Assets
Assignment 2 A successful businessman in the community has contacted the Badr County Board of Com...
Baird County maintains an investment trust fund for the School District and the Town of Bairdville (separate governments). Presented below is the preclosing trial balance for the investment trust fund. Trial Balance—December 31, 2017 Debits Credits Accrued Interest Receivable $ 22,000 Cash 36,600 Deposits—School District $ 439,200 Deposits—Town of Bairdville 320,400 Decrease in Fair Value of Investments (bonds) 14,600 Interest Income 87,600 Investments—Corporate Bonds 1,504,000 Investments—U.S. Treasury Securities 1,460,000 Net Position held in trust—School District (Jan. 1) 1,460,000 Net Position...
The City of St. John operates an investment trust fund for neighboring governments, including St. John County and the independent school district. Assume the investment trust fund began the year 2020 with investments in US government securities totaling $1,300,000, no liabilities, and Restricted Net Position of $1,300,000. The county and school district deposited $3,300,000 in the investment pool. The investment trust fund invested $1,300,000 in corporate bonds and $2,000,000 in US government securities. Interest received by the investment trust fund...
The City of St. John operates an investment trust fund for neighboring governments, including St. John County and the independent school district. Assume the investment trust fund began the year 2020 with investments in US government securities totaling $1,200,000, no liabilities, and Restricted Net Position of $1,200,000.The county and school district deposited $3,200,000 in the investment pool.The investment trust fund invested $1,000,000 in corporate bonds and $2,200,000 in US government securities.Interest received by the investment trust fund totaled $50,000 for...
(Journal entries and financial statements for an Investment Trust Fund) Pinnacle County operates an Investment Trust Fund for cities located in the county. The following en- tries are associated with the fund during 2019. Prepare (a) journal entries to record these transactions, (b) a statement of changes in fiduciary net position for the fund for the year ending December 31, 2019 (assume that the Investment Trust Fund began this year), and (c) a statement of fiduciary net position for the...
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, 2017: Debits Credits Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,500 Accrued Interest Receivable . . . . . . . . . . . ....
On July 1, 2016, the City of Corfu received a gift of debt securities of XYZ Company with a nominal (par) 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 5%, payable semiannually on April 1 and October 1. During the fiscal year...
During 2017, the following selected events and transactions
were recorded by Milos County Hospital.
1.
Gross charges for hospital services, all charged to accounts
and notes receivable, were as follows:
Patient service revenues
$1,666,500
2.
The hospital cafeteria and gift shop had cash sales of
$296,100.
3.
Additional information determined subsequently to recording
patient service revenues and relating to the current-year is as
follows:
Contractual adjustments
$
640,000
Provision for bad debts
31,000
Charity care
262,200
4.
A federal cost...
The Town of Weston has a Water Utility Fund with the following trial balance as of July 1, 2019, the first day of the fiscal year: Debits Credits Cash $ 349,000 Customer accounts receivable 211,400 Allowance for uncollectible accounts $ 31,900 Materials and supplies 132,000 Restricted assets (cash) 267,000 Utility plant in service 7,031,000 Accumulated depreciation—utility plant 2,631,000 Construction work in progress 119,000 Accounts payable 142,800 Accrued expenses payable 98,500 Revenue bonds payable 3,531,000 Net position 1,674,200 Totals $ 8,109,400...
The Town of Weston has a Water Utility Fund with the following trial balance as of July 1, 2016, the first day of the fiscal year: Credits $ Debits 337,000 204,200 $ 30,700 122,800 255,000 7,007,000 Cash Customer accounts receivable Allowance for uncollectible accounts Materials and supplies Restricted assets (cash) Utility plant in service Accumulated depreciation-utility plant Construction work in progress Accounts payable Accrued expenses payable Revenue bonds payable Net position Totals 2,607,000 107,000 128,400 80, 300 3,507,000 1,679,600 $8,033,000...
The Town of Weston has a Water Utility Fund with the following trial balance as of July 1, 2016, the first day of the fiscal year: Debits Credits Cash $ 338,000 Customer accounts receivable 204,800 Allowance for uncollectible accounts $ 30,800 Materials and supplies 123,200 Restricted assets (cash) 256,000 Utility plant in service 7,009,000 Accumulated depreciation—utility plant 2,609,000 Construction work in progress 108,000 Accounts payable 129,600 Accrued expenses payable 81,100 Revenue bonds payable 3,509,000 Net position 1,679,500 Totals $ 8,039,000...