Accounting for governmental and nonprofit organizations

The City Council of the City of Thurston decided to pool the investments of its General Fund with the funds of the County School Board and the City of Walla Walla. Each of these entities had accounted for its investments at cost. At the date of the creation of the pool, the cost and market value of the investments of each of the three entities funds are attached. Also attached are the transactions that occurred in the Investment Pool Trust Fund during the year. REQUIRED: (1) Using the attached forms, show the entry(ies) that should be made by the three separate entities for the investment pool. Use the asset account Equity in Investment Pool to record each entity's share of the pool at market value. Be sure to properly dispose of the existing accounts in each entity for the investments as they are currently being accounted for. Omit explanations. (2) Using the attached forms, show in general journal form the entries to be made in the accounts of the Investment Pool Trust Fund to record the attached transactions for the first year of its operations. Use the number of the transaction for the date. Omit explanations. CITY OF THURSTON INVESTMENT POOL TRUST FUND INFORMATION RELATING TO AMOUNTS TO BE INVESTED BY PARTICIPANTS CITY OF THURSTON INVESTMENT POOL TRUST FUND TRANSACTION INFORMATION FOR CURRENT YEAR (1) Recorded, at market value, the investments transferred to the pool. Assume the investments of the City of Thurston were in U.S. Treasury Bills, and the investments of both the City of Walla Walla and the County School Board were in certificates of deposit (CDs). (2) CDs that had been recorded at a market value of $1,000,000 matured. The pool received $1,050,000 in cash ($1,000,000 for the face of the CDs, and $50,000 interest). The entire amount was reinvested in a new issue of CDs. (3) Interest on Treasury bills was collected in the amount of $50,000, and interest on CDs was collected in the amount of $300,000. These amounts were reinvested in Treasury bills. (4) Interest on CDs accrued at year end amounted to $28,250. (5) At the end of the year, it was decided to compute and record the pool's liability to each of the three member funds for its proportionate share of earnings on the pooled investments. Carry your computation of each fund's proportionate share percentage to four decimal places. Round the amount of the distribution to each participant to the nearest dollar. CITY OF THURSTON INVESTMENT POOL TRUST FUND CALCULATION OF DISTRIBUTIONS TO PARTICIPANTS IN INVESTMENT POOL \begin{tabular}{|l|l|c|c|c|} \hline & \multicolumn{1}{|c|}{InvestmentAmount} & PercentofTotal & InterestEarned \\ \hline & County School Board & & & \\ \hline & City of Thurston & & & \\ \hline & City of Walla Walla & & & \\ \hline & Totals & & & \\ \hline & & & & \\ \hline \end{tabular} The City Council of the City of Thurston decided to pool the investments of its General Fund with the funds of the County School Board and the City of Walla Walla. Each of these entities had accounted for its investments at cost. At the date of the creation of the pool, the cost and market value of the investments of each of the three entities funds are attached. Also attached are the transactions that occurred in the Investment Pool Trust Fund during the year. REQUIRED: (1) Using the attached forms, show the entry(ies) that should be made by the three separate entities for the investment pool. Use the asset account Equity in Investment Pool to record each entity's share of the pool at market value. Be sure to properly dispose of the existing accounts in each entity for the investments as they are currently being accounted for. Omit explanations. (2) Using the attached forms, show in general journal form the entries to be made in the accounts of the Investment Pool Trust Fund to record the attached transactions for the first year of its operations. Use the number of the transaction for the date. Omit explanations. CITY OF THURSTON INVESTMENT POOL TRUST FUND INFORMATION RELATING TO AMOUNTS TO BE INVESTED BY PARTICIPANTS CITY OF THURSTON INVESTMENT POOL TRUST FUND TRANSACTION INFORMATION FOR CURRENT YEAR (1) Recorded, at market value, the investments transferred to the pool. Assume the investments of the City of Thurston were in U.S. Treasury Bills, and the investments of both the City of Walla Walla and the County School Board were in certificates of deposit (CDs). (2) CDs that had been recorded at a market value of $1,000,000 matured. The pool received $1,050,000 in cash ($1,000,000 for the face of the CDs, and $50,000 interest). The entire amount was reinvested in a new issue of CDs. (3) Interest on Treasury bills was collected in the amount of $50,000, and interest on CDs was collected in the amount of $300,000. These amounts were reinvested in Treasury bills. (4) Interest on CDs accrued at year end amounted to $28,250. (5) At the end of the year, it was decided to compute and record the pool's liability to each of the three member funds for its proportionate share of earnings on the pooled investments. Carry your computation of each fund's proportionate share percentage to four decimal places. Round the amount of the distribution to each participant to the nearest dollar. CITY OF THURSTON INVESTMENT POOL TRUST FUND CALCULATION OF DISTRIBUTIONS TO PARTICIPANTS IN INVESTMENT POOL \begin{tabular}{|l|l|c|c|c|} \hline & \multicolumn{1}{|c|}{InvestmentAmount} & PercentofTotal & InterestEarned \\ \hline & County School Board & & & \\ \hline & City of Thurston & & & \\ \hline & City of Walla Walla & & & \\ \hline & Totals & & & \\ \hline & & & & \\ \hline \end{tabular}