(Journal entries for three Agency Funds and a trial balance for each fund) Assume that the Town...

Question:

(Journal entries for three Agency Funds and a trial balance for each fund) Assume that the Town of Boonsville maintains an Agency Fund for its employees' insurance withholdings, another for its employees' income tax withholdings, and a third for its employees' pension contributions. The following are selected transactions, incurred during 2004, related to these funds:

1. The town recorded its monthly payroll. Salaries totaled $\$ 350,000$. The withholdings were as follows: $\$ 70,000$ for employees' income taxes, $\$ 30,000$ for employees' insurance, $\$ 15,000$ for employees' pension contributions, and $\$ 25,000$ for miscellaneous deductions. The General Fund paid the appropriate amount to each Agency Fund.

2. The Employees' Insurance Deposits Fund made a payment of $\$ 25,000$ to the various insurance companies providing insurance coverage to the employees.

3. The town recorded its monthly payroll. Salaries totaled $\$ 375,000$. The withholdings were as follows: $\$ 75,000$ for employees' income taxes, $\$ 20,00$ for employees' insurance, $\$ 18,000$ for employees' pension contributions, and $\$ 26,000$ for miscellaneous deductions. The General Fund paid the appropriate amount to each Agency Fund.

4. The town recorded its monthly payroll. Salaries totaled $\$ 350,000$. The withholdings were as follows: $\$ 70,000$ for employees' income taxes, $\$ 30,000$ for employees' insurance, $\$ 15,000$ for employees' pension contributions, and $\$ 25,000$ for miscellaneous deductions. The General Fund paid the appropriate amounts to the appropriate Agency Fund.

5. The General Fund matched the employees' payments to the Employees' Pension Agency Fund.
6. The appropriate Agency Funds made a payment of $\$ 215,000$ to the U.S. government and $\$ 50,000$ to the Pension Trust Fund.
7. The town recorded its monthly payroll. Salaries totaled $\$ 375,000$. The withholdings were as follows: $\$ 75,000$ for employees' income taxes, $\$ 20,000$ for employees' insurance, $\$ 18,000$ for employees' pension contributions, and $\$ 26,000$ for miscellaneous deductions. The General Fund paid the appropriate amounts to the appropriate Agency Fund.
8. The General Fund matched the employees' payments to the Employees' Pension Agency Fund.
Required: Prepare the journal entries necessary to record these events on the books of the Employees' Insurance Agency Fund, Employees' Income Tax Agency Fund, and the Employees' Pension Agency Fund and prepare a trial balance for each fund.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Introduction To Government And Not For Profit Accounting

ISBN: 9780130464149

5th Edition

Authors: Martin Ives, Joseph R. Razek, Gordon A. Hosch

Question Posted: