Question
21. On January 1, Forrester County is holding investments for Tinsel Town valued at $500,000 in an investment pool, accounted for in an investment trust
21. On January 1, Forrester County is holding investments for Tinsel Town valued at $500,000
in an investment pool, accounted for in an investment trust fund. On January 1, Valley School
District invests $1,500,000 in the pool. Earnings on pooled investments for the six months ended
June 30 totaling $300,000 were received in cash.
Required
1) What percentage interest in the pool is held by the town and the school district?
2) (a) Show the entry in the Investment Trust Fund to record the School Districts investment in
the pool.
(b) Show the entry in the Investment Trust Fund to summarize the collection of interest for
the six-month period.
(c) show the entry in the Investment Trust Fund to record the distribution of the interest
earned on pooled investments, assuming that the interest will be reinvested by the town and
school district.
(d) on June 30, the Forrester county general fund itself invested in the investment pool
1,000,000. Please show the entry in both the general fund and the investment trust fund.
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