A Nonexpendable Trust Fund was established to help pay for Little League baseball.A total of $100,000 was donated to Babe City.The earnings, not the principal, from the donation could be used to fund baseball.

Required:

Make the entries and identify the fund into which the following transactions should be made:

a.The donation is received and invested immediately in a mutual stock fund.

b.Cash dividends of $8,500 were received from the mutual fund and made available for spending.

c.During the first baseball season, $8,300 was spent from the fund.

d.The closing entries were made.

Question

A Nonexpendable Trust Fund was established to help pay for Little League baseball.A total of $100,000 was donated to Babe City.The earnings, not the principal, from the donation could be used to fund baseball.
​
Required:
​
Make the entries and identify the fund into which the following transactions should be made:
​
a.The donation is received and invested immediately in a mutual stock fund.​
​
b.Cash dividends of $8,500 were received from the mutual fund and made available for spending.​
​
c.During the first baseball season, $8,300 was spent from the fund.​
​
d.The closing entries were made.

Quizplus · Accepted Answer

The Answer of A Nonexpendable Trust Fund was established to help pay for Little League baseball.A total of $100,000 was donated to Babe City.The earnings, not the principal, from the donation could be used to fund baseball.
​
Required:
​
Make the entries and identify the fund into which the following transactions should be made:
​
a.The donation is received and invested immediately in a mutual stock fund.​
​
b.Cash dividends of $8,500 were received from the mutual fund and made available for spending.​
​
c.During the first baseball season, $8,300 was spent from the fund.​
​
d.The closing entries were made.

A Nonexpendable Trust Fund Was Established to Help Pay for Little