On April 1, 2014, the Duval County School district received a $50,000 gift from
ID: 2453210 • Letter: O
Question
On April 1, 2014, the Duval County School district received a $50,000 gift from a local civic organization with the stipulation that, on March 31 of each year, any interest earnings on the unspent principal be awarded as a scholarship to the 7thgrade student with the highest academic average in mathematics over a 2 year period. A private-purpose trust fund, the Mathematics Scholarship Fund, was created.
Record the following transactions on the books of the Mathematics scholarship Fund:
1) On April 1, 2014, the gift was received and immediately invested.
2) On March 31, 2015, $1,500 in interest was received.
3) On March 31, 2015, $1,500 was awarded to Michelle Galarza, who had maintained a 4.0 grade point average over the past two years in mathematics.
4) The nominal accounts were closed.
Explanation / Answer
On the books of the Mathematic Scholarship Fund
1. on April 1,2014
Bank A/c Dr $50,000
To Gift A/c $50,000
(Being Gift from local civic organisation recieved)
Mathematic Scholarfund A/c $50,000
To Bank A/c $50,000
(Being Investment made in Mathematics Scholarfund)
2. on March 31, 2015
Mathematic Scholar Fund A/c $1,500
To Interest Received A/c Dr. $ 1,500
(Being Interest Received)
3. On March 31, 2015
Scholarship Exp A/c Dr $1,500
To Mathematic Scholarship Fund A/c $1,500
(being Scholarship Paid)
4. on March 31, 2015
Gift A/c Dr $50,000
Interest Recieved A/c Dr $1,500
To Scholarship Exp. A/c $1,500
To Profit and Loss A/c $50,000
(Being Nominal Accounts closed)
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.