Continuous Problem $07-01$

$7$C$.$ 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 $ $50,500$

Accrued Interest Receivable $7,500$

Investments in Corporate Bonds $750,000$

Net position Held in Trust $ $808,000$

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

Required:

a$.$ Record the following transactions in the general journal of the City of Monroe Community Foundation Trust Fund 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.

$7$C$.$ 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$.$ Record the following transactions in the general journal of the City of Monroe Police Department Pension Trust Fund 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.

$7$C$.$ Part $3.$ Fiduciary Fund Financial Statements

Required:

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

Statement of Changes in Fiduciary Net position.

Statement of Fiduciary Net position.