Trust fund Worksheet

Open Posted By: ahmad8858 Date: 08/01/2021 Graduate Dissertation & Thesis Writing



An inter vivos trust was created by Isaac Posney. Isaac owned a large department store in Juggins, Utah. Adjacent to the store, Isaac also owned a tract of land that was used as an extra parking lot when the store was having a sale or during the Christmas season. Isaac expected the land to appreciate in value and eventually be sold for an office complex or additional stores. Isaac placed the land into a charitable lead trust, which would hold the land for ten years until Isaac's son would turn 21. At that time, title would be transferred to the son.  The store will pay rent to use the land during the interim. The income generated each year from this usage will be given to a local church. The land was currently valued at $416,000.

During the first year of this arrangement, the trustee recorded the following cash transactions:


Cash inflow:


Rental income



Cash outflows:



$ 5,200


Property taxes



Paving (considered an   extraordinary repair)






Distribution to income   beneficiary



Prepare all required journal entries on the Trust Fund table for this trust fund including the entry to create the trust. 




Trust – Principal 



Cash – Income


Trust – Income 



Insurance Expense – Income 


Cash – Income



Property Taxes Expense – Income 


Cash – Income



Land Improvements


Cash – Income



Due from Trust – Principal


Due to Trust – Income 



Maintenance Expense – Income


Cash – Income



Equity in Income: Beneficiary


Cash – Income

Category: Arts & Education Subjects: English literature Deadline: 12 Hours Budget: $120 - $180 Pages: 2-3 Pages (Short Assignment)