7C. 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, 2015:

	Debits	Credits
Cash	$140,000
Accrued Interest Receivable	72,000
Investments: Bonds	5,300,000
Investments: Common Stock	2,790,000
Accounts Payable		$27,000
Net Assets Held in Trust for Employee Benefits		8,275,000
Totals	$ 8,302,000	$8,302,000

QUESTION...

Required: 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, 2015, then prepare and post an entry closing all nominal accounts to Net Assets:

PLEASE FOLLOW THIS INSTRUCTION AND ONLY USE THESE ACCOUNTS!!! USING ONLY THE FOLLOWING ACCOUNTS TO ANSWER THE QUESTION: CASH, ACCRUED INTEREST RECEIVABLE, INVESTMENT IN CORP. BONDS, INVESTMENT IN CORP. STOCK, ACCOUNTS PAYABLE, NET POSITION (BEGININING), ADDITIONS MEMBER CONTRIBUTIONS, ADDITIONS EMPLOYER CONTRIBUTIONS, ADDITIONS INVESTMENT EARNINGS-INTEREST, ADDITIONS INVESTMENT EARNINGS-INTEREST, ADDITIONS INVESTMENT EARNINGS-DIVIDENDS, ADDITIONS INVESTMENT EARNINGS-FMV,DEDUCTIONS ANNUITY BENEFITS, DEDUCTIONS-DISABILITY BENEFITS, DEDUCTIONS-REFUNDS TO TERMINATED EMPLOYEES

(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 $386,900, 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 $575,000.

(5) Annuity benefits in the amount of $377,400, 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 $507,500, were paid in cash.

(7) During the year, common stock valued at $505,000 was sold for $506,800. A portion of these funds, $502,000 were invested in common stock of a different company.

(8) At year-end, the market value of investments in bonds increased by $12,750; the market value of investments in stocks decreased by $5,770.