Home / Questions / I need alot of help on the BOLD Section at the bottom 7–C. Part 1. Private Purpose Trust Fund Transa
I need alot of help on the BOLD Section at the bottom
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, 2017:
Debits |
Credits |
|
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
$ 50,500 |
|
Accrued Interest Receivable . . . . . . . . . . . . . . . . . . |
7,500 |
|
Investments in Corporate Bonds . . . . . . . . . . |
750,000 |
|
Net position Held in Trust ……………… . . . . . . . . . |
$ 808,000 |
|
Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . |
$ 808,000 |
$ 808,000 |
Required:
a. Open a general journal for the City of Monroe Community Foundation Trust Fund and record the following transactions for the year ending December 31, 2017:
(1) On May 1, the first semiannual interest payment 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 $205,500, 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 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 $48,000 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, 2017:
Debits |
Credits |
|
Cash |
$137,000 |
|
Accrued Interest Receivable |
75,000 |
|
Investments: Bonds |
5,300,000 |
|
Investments: Common Stock |
2,790,000 |
|
Accounts Payable |
$27,000 |
|
Net position Held in Trust for Employee Benefits |
8,275,000 |
|
Totals |
$8,302,000 |
$8,302,000 |
Required:
a. Open a general journal for the City of Monroe Police Department Pension Trust Fund and record the following transactions for the year ending December 31, 2017:
(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 $212,000, including the accrued interest receivable at the beginning of the year. The interest accrual at year end amounted to $86,000.
(3) During the year, common stock dividends 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 $ 82,020 and refunds to nonvested terminated employees of $39,800 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 $3,250.
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
Apr 04 2020 Read more Less More
An increase in the price of chicken feed shifts the supply curve for eggs to the left and moves buyers along the demand curve. In the jargon of economics, then what chang...
Apr 27 2020Prasad is trying to decide what kind of new car he is going to buy. He relies on Consumer Reports, car magazines, and the advice of car mechanics. Prasad is using [A]Ma...
Dec 18 2017Relating Output and Unemployment: Okun's Law1) According to Okun's law, an increase in the unemployment rate will cause ________ in the level of employment and __...
Jan 11 2020Weld failures always occur in the fusion zone of the weld joint since this is the part of the joint that has been melted: (a) true (b) false 7. Oxyacetylene welding is th...
Aug 19 2020The operation of resection involves the following stepsrough orientation of the plane tablethe three lines form a triangle of errordrawing lines back through the three co...
May 24 2020Membership in unions decreased rapidly in the 1980s.12. If the wage rate is fixed, MLC > wage.13. Unions often face a tradeoff between higher w...
Dec 12 2019Search this cour signment 1 Take Details Question: Problem 4.05 (Price-Earnings Ratio) bhfch/Problem 4.05 (Price Earnings Ratio) 1.1.20 Right "Check My Work Clicked: 3 T...
Jan 31 2020The Japanese Management organizing process usually involvesI. Collective responsibility and accountability. II. Ambiguity of decision responsibility. III. Clear and spe...
Jan 10 2018Georgi Rostov deposits $15,000 in a savings account that pays 6% interest compoundedmonthly. Three years later, he deposits $14,000. Two years after the$14,000 deposit, h...
May 27 2020what need theories would explain why lemuel greene was unhappy despite his high income? justify your answer >
Jul 08 2020Welcome to MyCourseHelp Services, World's leading Academic solutions provider with Millions of Happy Students.