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Friday, March 5, 2010
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(TCOs A and B) Fiduciary funds are to use which of the following measurement and basis of accounting?
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(TCOs B and C) Governmental Fund Balance is required to be displayed in which of the categories?
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(TCOs B and C)) Capital assets that are used by an enterprise fund should be accounted for in the following fund?
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(TCO D) The City of Norton received a gift of $3,500,000 from a group of local residents on April 1, 2012 and signed an agreement that the funds would be invested on a permanent basis and the income would be used to purchase artifacts for the city museum. The following transactions took place during the fiscal year ended Dec 31, 2012.
a. The gift was recorded on the books on April 1.
b. On April 1, 2012, the Calvin Co. bonds were purchased in the amount of $3,000,000, at par. The bonds carry an annual interest rate of 5 percent, payable semiannually on October 1 and April 1. The city also purchased a certificate with a face value of $250,000 pays interest of 4 percent on semiannually on October 1 and April 1.
c. On October 1, the semiannual interest was received on the bonds and certificate of deposit.
d. From October 1 through December 1, payments were made totaling $85,000 to purchase artifacts for the city museum.
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f. After a review of the bond market on December 31, 2012, the bonds had a market value of $2,979,000, exclusive of accrued interest.
g. The books were closed on December 31.
Required
a. Record the transactions on the books for Calvin Co. Museum Endowment Fund.
b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the Calvin Co. Museum Endowment Fund for the year ended December 31, 2012.
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