Question

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