Chapter 7 Fiduciary Funds

7C. Part 1. Private Purpose Trust Fund Transactions

The City of Monroe Scholarship Foundation private-purpose trust fund had the following

account balances on January 1, 2020:

Debits Credits

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 52,500

Accrued Interest Receivable . . . . . . . . . . . . . . . . . . 5,500

Investments in Corporate Bonds . . . . . . . . . . 750,000

Net position Held in Trust . . . . . . . . . $ 808,000

Totals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 808,000 $ 808,000

Required:

a. Open a general journal for the City of Monroe Community Foundation Trust Fund and

record the following transactions for the year ending December 31, 2020:

(1) On May 1, the first semiannual interest payment ($22,500) was received on the

corporate bonds. The bonds pay 6 percent annual interest, semiannually on May

1 and November 1.

(2) During the first half of the year, additional contributions from individuals and

foundations amounted to $211,000, in cash. From these funds, $ 200,000 were

invested in RST Corporation stock on June 15.

(3) On November 1, the second semiannual interest payment ($22,500) was

received from the investment in bonds.

(4) On November 15, a dividend was declared by RST Corporation in the amount of

$2,000 and was received in cash.

(5) On December 1, RST Corporation stock was sold for $204,000 cash. Those

funds were immediately invested in UVW Corporation stock.

(6) On December 15, cash scholarships in the amount of $51,000 were made to

various college students.

(7) On December 31, an accrual was made for year-end interest on the corporate

bonds.

(8) Also, on December 31, it was determined that the market value of the corporate

bonds, exclusive of accrued interest, was $ 752,100 and that the market value

of UVW Company stock was $ 199,000.

b. Post the entries to the Community Foundation Trust ledger (t-accounts).

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

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, 2020:

Debits Credits

Cash $152,000

Accrued Interest Receivable 75,000

Investments: Bonds 5,300,000

Investments: Common Stock 2,790,000

Accounts Payable $42,000

Net position Held in Trust for Employee Benefits 8,275,000

Totals $ 8,317,000 $8,317,000

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, 2020:

(1) Member contributions were received in the amount of $403,000. The City

General Fund contributed the same amount.

(2) Interest was received in the amount of $212,000, including the accrued interest

receivable at the beginning of the year. The interest accrual at year end

amounted to $81,000.

(3) During the year, dividends received on common stock amounted to $125,000.

(4) Investments were made during the year in common stock in the amount of

$650,000.

(5) Annuity benefits in the amount of $325,400, disability benefits of $ 79,900 and

refunds to nonvested terminated employees of $40,600 were recorded as

liabilities.

(6) Accounts payable, in the amount of $460,700, were paid in cash.

(7) During the year, common stock valued at $505,000 was sold for $506,800. A

portion of these funds, $500,000 were invested in common stock of a different

company.

(8) At year-end, the market value of investments in bonds increased by $7,750; the

market value of investments in stocks decreased by $1,200.

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 position.

7C. Part 3. Fiduciary Fund Financial Statements

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

1. Statement of Changes in Fiduciary Net position.

2. Statement of Fiduciary Net position

This is excel type problem. So, I am hoping for all the solutions within this week.

Thank you