Question

Prepare the journal entries to record the following transactions in an Investment Trust Fund for Seggen County during the calendar year 2019. 1. The cities of Turtle Creek and Pineview contributed $60,000 and $40,000, respectively, to an Investment Trust Fund operated by

Answer 1

Answer:

Entries and their narrations are posted below

Explanation:

We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.

Account                                DEBIT          CREDIT

Cash                                 $100,000

Contribution from TC                             $60,000

Contribution from P                                $40,000