A trust fund was created to assist local students in financial need.The following transactions occurred in the trust.
1.The committee forming the fund was able to raise $700,000 and invested the funds so that the principal would remain indefinitely,and the earnings would be used to aid needy students.
2.During the year,the fund earned $65,000 interest.Earnings remain invested in the trust until withdrawn to distribute,so the interest was invested.
3.$50,000 of the investments were sold,withdrawn,and distributed to provide scholarships.
4.The fund-raising committee contributed an additional $200,000 cash to the fund.This cash was deposited into the account and invested.
5.Interest earned but not yet deposited into the investment account was accrued at $17,000.
Required:
Prepare the necessary journal entries for each of the above transactions for the trust fund.

Question

Quizplus · Accepted Answer

The Answer of A trust fund was created to assist local students in financial need.The following transactions occurred in the trust.
1.The committee forming the fund was able to raise $700,000 and invested the funds so that the principal would remain indefinitely,and the earnings would be used to aid needy students.
2.During the year,the fund earned $65,000 interest.Earnings remain invested in the trust until withdrawn to distribute,so the interest was invested.
3.$50,000 of the investments were sold,withdrawn,and distributed to provide scholarships.
4.The fund-raising committee contributed an additional $200,000 cash to the fund.This cash was deposited into the account and invested.
5.Interest earned but not yet deposited into the investment account was accrued at $17,000.
Required:
Prepare the necessary journal entries for each of the above transactions for the trust fund.

A Trust Fund Was Created to Assist Local Students in Financial