ACCT 360 Week 8 Problem Assignment Help | Accounting Assignment Help | Franklin University
- Franklin University / ACCT 360
- 25 Jan 2019
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ACCT 360 Week 8 Problem Assignment Help | Accounting Assignment Help | Franklin University
P12-3 (Pension Trust Fund Journal Entries) The following is a trial
balance of the Police Retirement Fund of the City of Cherryville at January 1,
20X7:
|
Cash |
$ 6,000 |
|
|
Interest
Receivable |
450 |
|
|
Investments |
52,000 |
|
|
Pensions
Payable |
$ 150 |
|
|
Net Position—Restricted
for Pension Benefits |
|
58,300 |
|
$58,450 |
$58,450 |
The following transactions took place during the year:
1.
Contributions became due from the General Fund, $38,000, and a Special
Revenue Fund, $6,000. One-half of these amounts is the employees’ share of
contributions.
2.
Payments were received from the General Fund, $30,000, and the Special
Revenue Fund, $4,000.
3.
Securities were acquired for cash as follows:
a.
First Purchase:
|
Par
value |
$20,000 |
|
Premiums |
300 |
|
Interest
accrued at purchase |
200 |
b.
Second Purchase:
|
Par
value |
15,000 |
|
Discounts |
150 |
4.
Interest received on investments amounted to $3,000, including interest
receivable on January 1, 20X7, and the accrued interest purchased.
5.
An employee resigned prior to retirement and was paid $300, which is the
amount of her contributions and interest. Employer contributions do not vest
until retirement.
6.
Retirement payments of $600 were made (which included beginning of year
pensions payable); pensions payable of $200 remained at year end.
7.
An actuary indicated that the net pension liability at year end was
$19,000.
8.
The fair value of the pension plan investments was $200 more than the
carrying value at year end.
Required
Prepare journal entries, including closing entries, to record the
transactions in the general ledger of the Police Retirement Fund.
USA 
India