On July 1,2014,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 6%,payable semiannually on April 1 and October 1. During the fiscal year ended June 30,2015,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 Position for the City of Corfu Private-Purpose Trust Fund for the year ended June 30,2015.

Question

On July 1,2014,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 6%,payable semiannually on April 1 and October 1. During the fiscal year ended June 30,2015,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 Position for the City of Corfu Private-Purpose Trust Fund for the year ended June 30,2015.

Quizplus · Accepted Answer

The Answer of On July 1,2014,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 6%,payable semiannually on April 1 and October 1. During the fiscal year ended June 30,2015,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 Position for the City of Corfu Private-Purpose Trust Fund for the year ended June 30,2015.

On July 1,2014,the City of Corfu Received a Gift of Debt