Investment Marketable Securities

Investment Marketable Securities

  • The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
  • Assignments submitted through email will not be accepted.
  • Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.
  • Students must mention question number clearly in their answer.
  • Late submission will NOT be accepted.
  • Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
  • All answered must be typed using Times New Roman (size 12, double-spaced) No pictures containing text will be accepted and will be considered plagiarism).
  • Submissions without this cover page will NOT be accepted.


Assignment Question(s):                                                (Marks. 5)


Q1. The following are statements for the use of Proprietary Funds State whether the following are true or false. For the false items, explain why they are false.


  1. Enterprise Funds are used only when all services are provided to non-governmental entities, and Internal Service Funds are used only when all services are provided to governmental agencies that are a part of the reporting government.
  2. Enterprise Funds use the economic resources measurement focus and full accrual basis of accounting only when they want to compute the costs of services; otherwise, they use the current financial resources measurement focus and modified accrual basis of accounting.




Q.2.  Towry School District accepts donations that are used to provide awards to graduating seniors. Record the following transactions in the Towry Private Purpose Trust Fund – Awards Fund.  Also, prepare a statement of changes in fiduciary net position for the Fund for the year ended December 31, 2013.  This is the first year of operation for the Towry Private Purpose Trust Fund – Awards Fund.

  1.     Hannah, noted philanthropist, donates marketable securities worth $600,000 to the District, stipulating that all earnings on the securities be used for awards to graduates.
  2. The District receives dividends on the securities in the amount of $15,000.
  3. The District makes various awards to graduating seniors in the amount of $20,000.
  4. When the District prepares financial statements at the end of the year, the marketable securities have a fair value of $590,000.



Q3. Following are December 31, 2013 trial balances (budgetary accounts excluded) for the General Fund, Debt Service Fund, and Capital Projects Fund for Hebert County.

Prepare a governmental funds balance sheet and a statement of revenues, expenditures, and changes in fund balances as of and for the year ended December 31, 2013.

The General Fund had encumbrances of $25 outstanding on December 31, 2013.


Debits Credits

General Fund

Cash                                                                                             $1,900

Property taxes receivable – delinquent                                              330

Allowance for uncollectible property taxes           $   10

Accounts payable           120

Deferred revenues          250

Unassigned fund balance, January 1, 2013           1,720

Revenues – property taxes           3,200

Revenues – licenses and fees            350

Revenues – parks admissions fees            40

Investment income       220

Expenditures – general government                                                  360

Expenditures – public safety                                                          1,800

Expenditures – public works                                                             840

Expenditures – parks and culture                                                      350

Transfer out to Debt Service Fund                                                    250

Transfer out to Capital Projects Fund                                                                80  ____                                                                                                         Totals                           $5,910 $5,910

Debt Service Fund

Cash                                                                                                  $70

Assigned fund balance, January 1, 2013           $60

Expenditures – bond principal                                                           110

Expenditures – interest                                                                      130

Transfer in from General Fund    ___ 250

Totals                                                                                                   $310 $310

Capital Projects Fund

Cash                                                                                                $240

Expenditures – capital outlay                                                            420

Transfer in from General Fund           $80

Proceeds of bonds   ___ 580

Totals                                                                                                               $660 $660


Posted in Uncategorized