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

Required:

a. 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:

(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.

b. Post the entries to the Police Department Pension Trust ledger (t-accounts).

c. Prepare and post an entry closing all nominal accounts to Net Assets.

7C. Part 3. Fiduciary Fund Financial Statements

Required: Using the balances from Parts 1 and 2 prepare the following:

Statement of Changes in Fiduciary Net Assets

Statement of Fiduciary Net Assets