At the start of 2020, a resident of the City of Lewiston donated $3 million to the Lewiston School District. The donor specified that the entire $3 million be invested, and investment income used to provide recreational activities for middle school students. Investments were made, and 2020 investment income was $60,000. Administrative costs related to investing activities were $1,800. The school district spent $8,000 for supplies, $12,000 for facilities rent, and $30,000 for staffing of recreational activities. The investments are worth $3,100,000 at the end of 2020.
Required
Record the events described above in a permanent fund. Include closing entries.

Question

Quizplus · Accepted Answer

The Answer of At the start of 2020, a resident of the City of Lewiston donated $3 million to the Lewiston School District. The donor specified that the entire $3 million be invested, and investment income used to provide recreational activities for middle school students. Investments were made, and 2020 investment income was $60,000. Administrative costs related to investing activities were $1,800. The school district spent $8,000 for supplies, $12,000 for facilities rent, and $30,000 for staffing of recreational activities. The investments are worth $3,100,000 at the end of 2020.
Required
Record the events described above in a permanent fund. Include closing entries.

At the Start of 2020, a Resident of the City