On July 1,2011,Kent County received the following securities to be held as the principal of a trust; the income from the securities is to be transferred to the Kent Heritage Museum,a private not-for-profit museum. Required
1)In what type of fiduciary fund should the receipt of the bonds described above be recorded?
2)Show in general journal form the entry that should be made to record the receipt of the bonds.
3)On January 1,2012,interest received in cash amounted to $57,500 ($35,000 on Blue Company bonds and $22,500 on Red Company bonds).Assuming that income from the bonds is to be computed on the accrual basis,what is the amount of income for the period 7/1/11 - 12/31/11 that should be transferred to the Kent County Museum early in 2012? Show computations.

Question

On July 1,2011,Kent County received the following securities to be held as the principal of a trust; the income from the securities is to be transferred to the Kent Heritage Museum,a private not-for-profit museum.  Required
1)In what type of fiduciary fund should the receipt of the bonds described above be recorded?
2)Show in general journal form the entry that should be made to record the receipt of the bonds.
3)On January 1,2012,interest received in cash amounted to $57,500 ($35,000 on Blue Company bonds and $22,500 on Red Company bonds).Assuming that income from the bonds is to be computed on the accrual basis,what is the amount of income for the period 7/1/11 - 12/31/11 that should be transferred to the Kent County Museum early in 2012? Show computations.

Quizplus · Accepted Answer

The Answer of On July 1,2011,Kent County received the following securities to be held as the principal of a trust; the income from the securities is to be transferred to the Kent Heritage Museum,a private not-for-profit museum.  Required
1)In what type of fiduciary fund should the receipt of the bonds described above be recorded?
2)Show in general journal form the entry that should be made to record the receipt of the bonds.
3)On January 1,2012,interest received in cash amounted to $57,500 ($35,000 on Blue Company bonds and $22,500 on Red Company bonds).Assuming that income from the bonds is to be computed on the accrual basis,what is the amount of income for the period 7/1/11 - 12/31/11 that should be transferred to the Kent County Museum early in 2012? Show computations.

On July 1,2011,Kent County Received the Following Securities to Be