On July 1,2011,the City of Corfu received a gift of debt securities of XYZ Company with a nominal (par)value of $4,000,000.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 $4,088,000,including accrued interest of $60,000.The bonds carried an annual interest rate of 6%,payable semiannually on April 1 and October 1.During the fiscal year ended June 30,2012,the following transactions took place:
Required:
A.Record the above transactions on the books of the City of Corfu Private-Purpose Trust Fund.
B.Prepare a Statement of Changes in Fiduciary Net Assets for the City of Corfu Private-Purpose Trust Fund for the year ended June 30,2012.

Question

On July 1,2011,the City of Corfu received a gift of debt securities of XYZ Company with a nominal (par)value of $4,000,000.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 $4,088,000,including accrued interest of $60,000.The bonds carried an annual interest rate of 6%,payable semiannually on April 1 and October 1.During the fiscal year ended June 30,2012,the following transactions took place:
  Required:
A.Record the above transactions on the books of the City of Corfu Private-Purpose Trust Fund.
B.Prepare a Statement of Changes in Fiduciary Net Assets for the City of Corfu Private-Purpose Trust Fund for the year ended June 30,2012.

Quizplus · Accepted Answer

The Answer of On July 1,2011,the City of Corfu received a gift of debt securities of XYZ Company with a nominal (par)value of $4,000,000.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 $4,088,000,including accrued interest of $60,000.The bonds carried an annual interest rate of 6%,payable semiannually on April 1 and October 1.During the fiscal year ended June 30,2012,the following transactions took place:
  Required:
A.Record the above transactions on the books of the City of Corfu Private-Purpose Trust Fund.
B.Prepare a Statement of Changes in Fiduciary Net Assets for the City of Corfu Private-Purpose Trust Fund for the year ended June 30,2012.

On July 1,2011,the City of Corfu Received a Gift of Debt