(Journal entries and statements for a Pension Trust Fund)

The City of Saintsville has had an employee pension fund for several years. The following is a trial balance for the fund at December 31, 2003, and several transactions that occurred during 2004:

1. Contributions from the General Fund totaled $\$ 750,000$; included in this amount was $\$ 258,750$ from the employees and $\$ 491,250$ from the city.

2. Investments in corporate stocks costing $\$ 500,000$ were purchased.
3. The fund collected interest accrued at December 31, 2003. Investment income for 2004 totaled $\$ 4,800,000$, of which $\$ 4,290,000$ was collected in cash. Investment income earned in 2004 included dividends of $\$ 850,000$ and the remainder was interest.
4. Employee retirement benefits of $\$ 3,500,000$ were paid.
5. Additional U.S. government securities totaling $\$ 1,100,000$ were acquired.
6. Costs of operating the plan were $\$ 175,000$; of this amount $\$ 150,000$ was paid in cash and the remainder was accrued. The accrued expenses at the beginning of the year were also paid. These expenses are administrative in nature.
7. U.S. government securities that had a book value of $\$ 500,000$ were redeemed for $\$ 600,000$.
8. The market value of the corporate stocks at the end of the year increased by $\$ 1,000,000$.
Required: 1. Prepare the journal entries necessary to record these transactions.
2. Prepare a statement of changes in fiduciary net assets for the fund for 2004 .
3. Prepare a statement of fiduciary net assets as of December 31, 2004.

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City of Saintsville Pension Trust Fund Employees Retirement Fund Trial Balance December 31, 2003 Cash Investment income receivable Investments U.S. government securities Investments-corporate stocks Accrued expenses Net assets held in trust for pension benefits Debils Credits $ 52,500 210,000 20,000,000 30,575,000 $ 12,000 50,825,500 $50,837,500 $50,837,500