Log in
Accounting
1
answer
0
watching
207
views

Would it be possible to get an answer to the below questions(with calculations so that I can understand how to get theanswers).

Net Assets and Employees’ Retirement Fund

Complete the following activities and submit your answers toyour instructor in a Word document formatted to proper APAspecifications. Include any relevant supporting computations andexplanations.

Pension Trust Funds:

7-13:

Review the financial information pertaining to the City ofSweetwater in problem 7-13 on pages 220-221 of your text. Reviewthe transactions that occurred during the year ended June 30, 2015and complete the following:

a. Record the transactions on the books of theEmployees’ Retirement Fund.

b. Prepare a Statement of Changes in Fiduciary NetPosition for the Employees’ Retirement Fund for the Year Ended June30, 2015.

c. Prepare a Statement of Fiduciary Net Position for theEmployees’ Retirement Fund as of June 30, 2015.

The City of Sweetwater maintains an Employees’ Retirement Fund,a single-employer defined benefit plan that provides annuity anddisability benefits. The fund is financed by actuarially determinedcontributions from the city’s General Fund and by contributionsfrom employees. Administration of the retirement fund is handled byGeneral Fund employees, and the retirement fund does not bear anyadministrative expenses. The Statement of Fiduciary Net Positionfor the Employees’ Retirement Fund as of July 1, 2014, is shownhere:

CITY OF SWEETWATER

Employees’ Retirement Fund

Statement of Fiduciary Net Position

As of July 1, 2014

Assets

Cash

$120,000

Accrued Interest Receivable

65,000

Investments, at Fair Value:

Bonds

4,500,000

Common Stocks

1,300,000

Total Assets

5,985,000

Liabilities

Accounts Payable and Accrued Expenses

350,000

Fiduciary Net Position Restricted for Pensions

$5,635,000

During the year ended June 30, 2015, the following transactionsoccurred:

1. The interest receivable on investments was collected incash.

2. Member contributions in the amount of $250,000 were receivedin cash.

The city’s General Fund also contributed $750,000 in cash.

3. Annuity benefits of $700,000 and disability benefits of$150,000 were recorded a liabilities.

4. Accounts payable and accrued expenses in the amount of$900,000 were paid in cash.

5. Interest income of $240,000 and dividends in the amount of$40,000 were received in cash. In addition, bond interest income of$60,000 was accrued at year-end.

6. Refunds of $133,000 were made in cash to terminated,nonvested participants.

7. Common stocks, carried at a fair value of $500,000, were soldfor $480,000. That $480,000, plus an additional $300,000, wasinvested in stocks.

8. At year-end, it was determined that the fair value of stocksheld by the pension plan had decreased by $40,000; the fair valueof bonds had increased by $35,000.

9. Nominal accounts for the year were closed.

a. Record the transactions on the books of theEmployees’ Retirement Fund.

b. Prepare a Statement of Changes in Fiduciary NetPosition for the Employees’ Retirement Fund for the Year Ended June30, 2015.

c. Prepare a Statement of Fiduciary Net Position for theEmployees’’ Retirement Fund as of June 30, 2015.

Watch
1
answer
0
watching
207
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Jarrod Robel
Jarrod RobelLv2
28 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related questions

the city of merlot opeates a central garage through an internalservice fund to provide garage space and repairs for all city ownedand operated vehicles. The central garage fund was established by acontribution of 500,000 from the general fund on july 1 2017 atwhich time the building was acquired. the post closing trialbalance at june 30 2019 was as follows:

account debit credit

cash 150,000

due from general fund 20,000

inventory of materials and supplies 80,000

land 60,000

building 200,000

accumulated depreciation building 10,000

machinery and equipment 56,000

accumulated depreciation machinery 12,000

vouchers payable 38,000

net position 566,000 566,000

The following information applies to the fiscal year ended june30 2020

1. materials and supplies were purchased on account june74,000

2. the inventory of materials and supplies at june 30 2020 was58,000 which agreed with the physical count

3.salaries and wages paid to employees totaled 230,000 includingrelated costs.

4. a billing from the enterprise fund for utility chargestotaling 30,000 was received and paid.

5. depreciation of the building was recorded in the amount of5,000. depreciation fo the machinery and equipment was 8,000

6. billings to other departments for services rendered to themwere as follows:

general fund 262,000

water and sewer fund 84,000

special revenue fund 32,000

7. unpaid interfund receivable balances of june 30 2020 were asfollows:

general fund 6,000

special revenue fund 16,000

8. vouchers payable at june 30 2020 were 14,000

required:

a. for the period july 1 2019 through june 30 2020 preparejournal entries to record all of the transactions in the centralgarage fund accounts.

b. prepare closing entries for the central garage fund at june30 2020 (AICPA adapted)

During the fiscal year ended June 30, 20X3, West City Councilauthorized construction of a new city hall building and the sale ofserial bonds to finance the construction. The followingtransactions related to financing and constructing the city halloccurred during fiscal 20X3:

1.

On August 1, 20X2, West issued $5,160,000 of serial bonds for$5,260,000. Interest is payable annually, and the first retirementof $516,000 is due on July 31, 20X7. The premium is transferred tothe debt service fund.
2.

The old city hall, which had a recorded cost of $659,000, wastorn down. The cost of razing the old building was $51,500, net ofsalvage value. This cost was included in the capital budget but wasnot encumbered. The cost is vouchered and paid.
3.

West signed a contract with Roth Construction Company to buildthe city hall for $4,520,000. The contract cost is to beencumbered. Construction is to be completed during fiscal 20X4.
4.

Roth Construction Company bills West $2,130,000 for constructioncompleted during fiscal 20X3. Ten percent of the billings will beretained until final acceptance of the new city hall. The billingless the retainage had been paid during the fiscal year.

Required:
a.

For each of these transactions, prepare the necessary journalentries for all funds involved. Give the closing entries for thecapital projects fund. (Select the appropriate fund foreach situation when required. If no entry is required for atransaction/event, select "No journal entry required" in the firstaccount field.)
b.

Prepare a balance sheet for the capital projects fund at June30, 20X3.

c.

Prepare a statement of revenues, expenditures, and changes infund balance for the capital projects fund for the fiscal yearended June 30, 20X3. Assume the new city hall building is the onlyCapital Project with West City Council at the end of June 30, 20X3.(Amounts to be deducted should be indicated with minussign.)

The City of Monroe Scholarship Foundation private-purpose trustfund had the following account balances on January 1, 2015: DebitsCredits Cash . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . $ 49,500 Accrued Interest Receivable . . . . . . . .. . . . . . . . . . 7,500 Investments in Corporate Bonds . . . . .. . . . . 750,000 Net Assets Held in Trust ……………… . . . . . . . . .$ 807,000 Totals . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . $ 807,000 $ 807,000 Required: a. Open a generaljournal for the City of Monroe Community Foundation Trust Fund andrecord the following transactions for the year ending December 31,2015: (1) On May 1, the first semiannual interest payment wasreceived on the corporate bonds. The bonds pay 6 percent annualinterest, semiannually on May 1 and November 1. (2) During thefirst half of the year, additional contributions from individualsand foundations amounted to $206,026, in cash. From these funds, $200,000 were invested in RST Corporation stock on June 15. (3) OnNovember 1, the second semiannual interest payment was receivedfrom the investment in bonds. (4) On November 15, a dividend wasdeclared by RST Corporation in the amount of $4,000 and wasreceived in cash. (5) On December 1, RST Corporation stock was soldfor $203,500 cash. Those funds were immediately invested in UVWCorporation stock. (6) On December 15, cash scholarships in theamount of $50,000 were made to various college students. (7) OnDecember 31, an accrual was made for year-end interest on thecorporate bonds. (8) Also, on December 31, it was determined thatthe market value of the corporate bonds, exclusive of accruedinterest, was $ 752,100 and that the market value of UVW Companystock was $ 199,000. b. Post the entries to the CommunityFoundation Trust ledger (t-accounts). c. Prepare and post an entryclosing all nominal accounts to Net Assets. 7–C. Part 2. PensionTrust Fund Transactions The City of Monroe Police Departmentpension plan, a single-employer, defined-benefit plan, reported thefollowing account balances as of January 1, 2015: Debits CreditsCash $140,000 Accrued Interest Receivable 72,000 Investments: Bonds5,300,000 Investments: Common Stock 2,790,000 Accounts Payable$27,000 Net Assets Held in Trust for Employee Benefits 8,275,000Totals $ 8,302,000 $8,302,000 Required: a. Open a general journalfor the City of Monroe Police Department Pension Trust Fund andrecord the following transactions for the year ending December 31,2015: (1) Member contributions were received in the amount of$400,000. The City General Fund contributed the same amount. (2)Interest was received in the amount of $386,900, including theaccrued interest receivable at the beginning of the year. Theinterest accrual at year end amounted to $86,000. (3) During theyear, common stock dividends amounted to $125,000. (4) Investmentswere made during the year in common stock in the amount of$575,000. (5) Annuity benefits in the amount of $377,400,disability benefits of $ 82,020 and refunds to nonvested terminatedemployees of $39,800 were recorded as liabilities. (6) Accountspayable, in the amount of $507,500, were paid in cash. (7) Duringthe year, common stock valued at $505,000 was sold for $506,800. Aportion of these funds, $502,000 were invested in common stock of adifferent company. (8) At year-end, the market value of investmentsin bonds increased by $12,750; the market value of investments instocks decreased by $5,770. b. Post the entries to the PoliceDepartment Pension Trust ledger (t-accounts). c. Prepare and postan entry closing all nominal accounts to Net Assets. 7–C. Part 3.Fiduciary Fund Financial Statements Required: Using the balancesfrom Parts 1 and 2 prepare the following: 1. Statement of Changesin Fiduciary Net Assets. 2. Statement of Fiduciary Net Assets

Weekly leaderboard

Home
Homework Help 3,900,000
Accounting 580,000
Start filling in the gaps now
Log in