60.1K

Verified Solution

Link Copied!

7-C. Part 1. Private Purpose Trust Fund Transactions The City of Monroe Scholarship Foundation private-purpose trust fund had the following account balances on January 1, 2020: Cash Accrued Interest Receivable Investments in Corporate Bonds Net position Held in Trust Totals Debits Credits $ 50,500 7,500 750,000 $808,000 $808,000 $808,000 Required: a. Record the following transactions in the general journal of the City of Monroe Community Foundation Trust Fund for the year ending December 31, 2020. (1) On May 1, the first semiannual Interest payment ($22.500) was received on the corporate bonds. The bonds pay 6 percent annual interest, semiannually on May 1 and November 1. (2) During the first half of the year, additional contributions from Individuals and foundations amounted to $211,000, in cash. From these funds, $200,000 were invested in RST Corporation stock on June 15. (3) On November 1, the second semiannual Interest payment ($22.500) was received from the Investment in bonds. (4) On November 15, a dividend was declared by RST Corporation in the amount of $2,000 and was received in cash. (5) On December 1, RST Corporation stock was sold for $204,000 cash. Those funds were immediately Invested in UVW Corporation stock. (6) On December 15, cash scholarships in the amount of $51,000 were made to various college students. (7) On December 31, an accrual was made for year-end interest on the corporate bonds. (8) Also, on December 31, It was determined that the market value of the corporate bonds, exclusive of accrued interest, was $752.100 and that the market value of UVW Company stock was $199,000. b. Post the entries to the Community Foundation Trust ledger (T-accounts). c. Prepare and post an entry closing all nominal accounts to Net position. 7-C. Part 2. Pension Trust Fund Transactions The City of Monroe Police Department pension plan, a single-employer, defined-benefit plan, reported the following account balances as of January 1, 2020: Cash Accrued Interest Receivable Investments: Bonds Investments: Common Stock Accounts Payable Net position Held in Trust for Employee Benefits Totals Debits $ 152,000 75,000 5,300,000 2,790,000 Credits $ 42,000 8,275,000 $8,317,000 $8,317,000 Required: a. Record the following transactions in the general journal of the City of Monroe Police Department Pension Trust Fund for the year ending December 31, 2020. (1) Member contributions were received in the amount of $403,000. The City General Fund contributed the same amount. (2) Interest was received in the amount of $212,000, including the accrued interest receivable at the beginning of the year. The Interest accrual at year end amounted to $81.000. (3) During the year, dividends received on common stock amounted to $125,000. (4) Investments were made during the year in common stock in the amount of $650,000. (5) Annuity benefits in the amount of $325,400, disability benefits of $79,900 and refunds to nonvested terminated employees of $40,600 were recorded as liabilities. (6) Accounts payable, in the amount of $460,700, were paid in cash. (7) During the year, common stock valued at $505,000 was sold for $506,800. A portion of these funds, $500,000 were invested in common stock of a different company. (8) At year-end, the market value of investments in bonds increased by $7,750; the market value of Investments in stocks decreased by $1,200. b. Post the entries to the Police Department Pension Trust ledger (T-accounts). c. Prepare and post an entry closing all nominal accounts to Net position. 7-C. Part 3. Fiduciary Fund Financial Statements Required: Using the balances from Parts 1 and 2 prepare the following: 1. Statement of Changes In Fiduciary Net position. 2. Statement of Fiduciary Net position. Private Purpose Entries Private Pension Trust Purpose T Entries Pension Trust T Accounts Stmt of Changes Stmt of Net Position Accounts Record the transactions in the general journal of the City of Monroe Community Foundation Trust Fund for the year ending December 31, 2020. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 1 No Transaction 01 General Journal Cash Accrued Interest Receivable Additions-Investment Earnings-Interest 2 2a Cash Additions-Contributions Debit Credit 22,500 7,500 15,000 211,000 211,000 3 2b Investment in RST Corporation Stock 200,000 Cash 200,000 4 03 Cash 22,500 Additions-Investment Earnings-Interest 22,500 5 04 Cash Additions-Investment Earnings-Dividends 6 5a Cash Investment in RST Corporation Stock Additions-Investment Earnings-Net Increase (Decrease) in Fair 7 5b Investment in UVW Corporation Stock Cash Deductions-Distribution to Nonprofit Organizations 06 Cash > > 2,000 2,000 204,000 200,000 4,000 204,000 204,000 51,000 51,000 9 07 Accrued Interest Receivable Additions-Investment Earnings-Interest 7,500 7,500 10 10 08 Investment in Corporate Bonds 2,100 Additions-Investment Earnings-Net Increase (Decrease) in Fair Val 2,900 Investment in UVW Corporation Stock 5,000 11 CI. Additions-Contributions 211,000 Additions-Investment Earnings-Interest 45,000 Additions-Investment Earnings-Dividends 2,000 Additions-Investment Earnings-Net Increase (Decrease) in Fair Val 1,100 Fiduciary Net Position 208,100 Deductions-Distribution to Nonprofit Organizations 51,000 < Private Purpose Entries Private Purpose T Accounts > Complete this question by entering your answers in the tabs below. Private Purpose Entries Private Purpose T Accounts Pension Trust Pension Trust Entries T Accounts Stmt of Changes Stmt of Net Position Post the entries to the Community Foundation Trust ledger (T-accounts). Beg. bal. Cash Accrued Interest Receivable Beg. bal End. bal. End. bal. Investment In Corporate Bonds Investment In RST Corporation Stock Beg. bal. Beg. bal. End. bal. End. bal. Investment in UVW Corporation Stock Net Position (beginning) Beg. bal. Beg. bal End. bal. 0 End. bal. Additions Contributions Beg bal Additions - Investment Earnings - Interest Beg. bal End. bal. End. bal. Additions - Investment Earnings - Dividends Additions - Investment Earnings - A FMV Beg. bal. Beg. bal End. bal. End. bal. Deductions Distributions To NFPs Net Position Beg. bal. Beg. bal 0 < Private Purpose Entries Pension Trust Entries > Preclosing 7-C. Part 2. Pension Trust Fund Transactions The City of Monroe Police Department pension plan, a single-employer, defined-benefit plan, reported the following account balances as of January 1, 2020: Cash Accrued Interest Receivable Investments: Bonds Investments: Common Stock Accounts Payable Net position Held in Trust for Employee Benefits Totals Debits $ 152,000 Credits 75,000 5,300,000 2,790,000 $ 42,000 8,275,000 $8,317,000 $8,317,000 Required: a. Record the following transactions in the general Journal of the City of Monroe Police Department Pension Trust Fund for the year ending December 31, 2020. (1) Member contributions were received in the amount of $403,000. The City General Fund contributed the same amount. (2) Interest was received in the amount of $212,000, including the accrued interest receivable at the beginning of the year. The Interest accrual at year end amounted to $81,000. (3) During the year, dividends received on common stock amounted to $125,000. (4) Investments were made during the year in common stock in the amount of $650,000. (5) Annuity benefits in the amount of $325,400, disability benefits of $79,900 and refunds to nonvested terminated employees of $40,600 were recorded as liabilities. (6) Accounts payable, in the amount of $460,700, were paid in cash. (7) During the year, common stock valued at $505,000 was sold for $506,800. A portion of these funds, $500,000 were invested in common stock of a different company. (8) At year-end, the market value of investments in bonds increased by $7,750; the market value of Investments in stocks decreased by $1,200. b. Post the entries to the Police Department Pension Trust ledger (T-accounts). c. Prepare and post an entry closing all nominal accounts to Net position. 7-C. Part 3. Fiduciary Fund Financial Statements Required: Using the balances from Parts 1 and 2 prepare the following: 1. Statement of Changes In Fiduciary Net position. 2. Statement of Fiduciary Net position. Complete this question by entering your answers in the tabs below. Private Purpose Entries Private Purpose T Pension Trust Entries Pension Trust T Accounts Stmt of Changes Stmt of Net Position Accounts Record the transactions in the general journal of the City of Monroe Police Department Pension Trust Fund for the year ending December 31, 2020. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 11 Record the member contributions were received in the amount of $403,000. The City General Fund contributed the same amount. Note: Enter debits before credits. Transaction 01 General Journal Debit Credit Record entry Clear entry View general journal < Private Purpose T Accounts Pension Trust T Accounts > Complete this question by entering your answers in the tabs below. Private Purpose Entries Private Purpose T Accounts Pension Trust Entries Pension Trust T Accounts Stmt of Changes Stmt of Net Position Post the entries to the Police Department Pension Trust ledger (T-accounts). Beg. bal. End. bal. Cash 0 Accrued Interest Receivable Beg. bal. End. bal. 0 Investment In Corp. Bonds Investment In Common Stock Beg. bal. Beg. bal. End. bal. End. bal. Accounts Payable Net Position (beginning) Beg. bal. Beg. bal. End. bal. End. bal. Additions - Contributions - Plan Member Additions - Contributions - Employer Beg. bal. Beg. bal. End. bal. End. bal. Additions - Investment Earnings - Interest Additions - Investment Earnings - Dividends Beg. bal. Beg. bal. End. bal. 0 End. bal. 0 Additions - Investment Earnings - A FMV Deductions Annuity Benefits Beg. bal. Beg. bal. End. bal. 0 End. bal. 0 Deductions Disability Benefits Beg. bal. Deductions - Refunds To Terminated Employees Beg. bal End. bal. 0 Beg. bal. Net Position 0 Preclosing End. bal. 0 Private Purpose Entries Private Purpose T Pension Trust Entries Pension Trust T Accounts Stmt of Changes Stmt of Net Position Accounts Prepare a Statement of Changes in Fiduciary Net position. (Input all values as positive numbers.) CITY OF MONROE Fiduciary Fund Statement of Changes in Fiduciary Net Position For the Year Ended December 31, 2020 Police Pension Trust Fund Private Purpose Trust Fund Additions Contributions: Plan Members Employer Individual and Foundations Total Contributions Investment Income: Interest Dividends Net Increase in Fair Value of Investments Total Investment Income Total Additions Deductions Annuity Benefits Disability Benefits Refunds to Terminated Employees Distribution of Scholarships Total Deductions Change in Net Position Net Position, January 1, 2020 Net Position, December 31, 2020 $ < Pension Trust T Accounts 0 0 0 0 0 0 0 0 0 0 0 $ 0 Stmt of Net Position > Private Purpose Entries Private Purpose T Pension Trust Entries Pension Trust T Accounts Accounts Stmt of Changes Stmt of Net Position Prepare a Statement of Fiduciary Net position. CITY OF MONROE Fiduciary Fund Statement of Fiduciary Net Position Cash Accrued Interest Receivable Investments at Fair Value: Bonds Common Stocks Total Investments Total Assets Assets Liabilities December 31, 2020 Accounts Payable Total Liabilities Net Position Resources Held in Trust for Pension Benefits and Other Purposes < Stmt of Changes Police Pensions Trust Fund Private Purpose Trust Fund Stmt of Net Position > 0 0 0 0 0 0

Answer & Explanation Solved by verified expert

See Answer