Author Question: A Debt Service Fund accumulates resources to retire debt that is due in a lump sum in the year 2014 ... (Read 61 times)

arivle123 · **on:** Jul 5, 2018

A Debt Service Fund accumulates resources to retire debt that is due in a lump sum in the year 2014 . The Fund held marketable securities that cost 900,000 when purchased during 2006 and 2007 .

The securities had fair market values of 875,000 on January 1, 2013, and 930,000 on December 31, 2013 . The average fair market value during the year was 895,000 . At what amount should the Fund report the securities in its balance sheet on December 31, 2013?
a. 875,000
b. 895,000
c. 900,000
d. 930,000

Question 2

Which of the accounts below would not appear in the balance sheet columns of the end-of-period spreadsheet?
a. Terry James, Drawing
b. Service Revenue
c. Unearned Revenue
d. Terry James, Drawing and Unearned Revenue