- How will the investment trust fund report the General Funds interest in the investment pool and the Albertville Schools interest in the investment pool?
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Report the school but not the General fund.
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Report the General fund but not the school.
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Report both the school and the General fund.
The Albertville City Council decided to pool the investments of its General Fund with Albertville Schools and Richwood Township in an investment pool to be managed by the city. Each of the pool participants had reported its investments at fair value as of the end of 2019. At the date of the creation of the pool, February 15, 2020, the fair value of the investments of each pool participant was as follows Investments 12/31/19 2/15/20 City of Albertville General Fund Albertville Schools $ 900,000 $ 950,000 4,465,0e0 4,085,000 $9,210,000 $9,500,800 4, 220,0ee 4,090,000 Richwood Township Total Required a. Prepare the journal entries that should be made by the City of Albertville, Albertville Schools, and Richwood Township on February 15 to record their participation in the investment pool. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Transaction Fund General Journal Debit Credit 1. The Albertville City Council decided to pool the investments of its General Fund with Albertville Schools and Richwood Township in an investment pool to be mana City of Albertville General Fund Albertville Schools Richwood Township Transaction Fund redit General Journal Record the investments transferred to the pool assume that the investments of the city's General Fund were in U.S. Treasury notes and the nvestments of both the schools and the township were in certificates of deposit (CDs) Investment Pool Trust Fund On June 15, Richwood Township decided to withdraw $3,110,000 for a capital projects payment. At the date of the withdrawal, the fair value of the Treasury notes had increased by $40,000. Assume that the trust fund was able to redeem the CDs necessary to complete the withdrawal without a enalty but did not receive interest on the funds 2a Investment Pool Trust Fund Record the increase in the fair value of the Treasury notes 2b Record the withdrawal for the capital projects payment. Record the payment of cash 2c On September 15, interest on Treasury notes in the amount of $70,000 was collected Investment Pool Trust Fund . Interest on CDs accrued at year-end amounted to $48,000 Investment Pool Trust Fund 4 5. At the end of the year, undistributed earnings were allocated to the investment pool participants. Assume that there were no additional changes in the air value of investments after the Richwood Township withdrawal. Round the amount of the distribution to each fund or participant to the nearest dollar. c Record the June 15 increase in each of the participant's funds. On June 15, Richwood Township decided to withdraw $3,110,000 for a capital projects payment. At the date of the withdrawal, the fair value of the Treasury notes had increased by $40,000. Assume that the trust fund was able to redeem the CDs necessary to complete the withdrawal without a penalty but did not receive interest on the funds. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Transaction Fund General Journal Debit Credit 1. Record the June 15 increase in each of the participant's funds. 1 City of Albertville General Fund Albertville Schools Richwood Township Record the increase in investments in the general journal. d. On June 15, Richwood Township decided to withdraw $3,110,000 for a capital projects payment. At the date of the withdrawal, the fair value of the Treasury notes had increased by $40,000. Assume that the trust fund was able to redeem the CDs necessary to complete the withdrawal without a penalty but did not receive interest on the funds. On September 15, interest on Treasury notes in the amount of $70,000 was collected. Interest on CDs accrued at year-end amounted to $48,000. At the end of the year undistributed earnings were allocated to the investment pool participants. Assume that there were no additional changes in the fair value of investments after the Richwood Township withdrawal. Round the amount of the distribution to each fund or participant to the nearest dollar. Record the change in each participant's Equity in Pooled Investment account due to the September 15 treasury interest and December 31 CD interest accrual. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Transaction General Journal Credit un 1. Record the change in each participant's Equity in Pooled Investment account due to the September 15 treasury interest and December 31 CD interest accrual City of Albertville General Fund Albertville Schools Richwood Township The Albertville City Council decided to pool the investments of its General Fund with Albertville Schools and Richwood Township in an investment pool to be managed by the city. Each of the pool participants had reported its investments at fair value as of the end of 2019. At the date of the creation of the pool, February 15, 2020, the fair value of the investments of each pool participant was as follows Investments 12/31/19 2/15/20 City of Albertville General Fund Albertville Schools $ 900,000 $ 950,000 4,465,0e0 4,085,000 $9,210,000 $9,500,800 4, 220,0ee 4,090,000 Richwood Township Total Required a. Prepare the journal entries that should be made by the City of Albertville, Albertville Schools, and Richwood Township on February 15 to record their participation in the investment pool. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Transaction Fund General Journal Debit Credit 1. The Albertville City Council decided to pool the investments of its General Fund with Albertville Schools and Richwood Township in an investment pool to be mana City of Albertville General Fund Albertville Schools Richwood Township Transaction Fund redit General Journal Record the investments transferred to the pool assume that the investments of the city's General Fund were in U.S. Treasury notes and the nvestments of both the schools and the township were in certificates of deposit (CDs) Investment Pool Trust Fund On June 15, Richwood Township decided to withdraw $3,110,000 for a capital projects payment. At the date of the withdrawal, the fair value of the Treasury notes had increased by $40,000. Assume that the trust fund was able to redeem the CDs necessary to complete the withdrawal without a enalty but did not receive interest on the funds 2a Investment Pool Trust Fund Record the increase in the fair value of the Treasury notes 2b Record the withdrawal for the capital projects payment. Record the payment of cash 2c On September 15, interest on Treasury notes in the amount of $70,000 was collected Investment Pool Trust Fund . Interest on CDs accrued at year-end amounted to $48,000 Investment Pool Trust Fund 4 5. At the end of the year, undistributed earnings were allocated to the investment pool participants. Assume that there were no additional changes in the air value of investments after the Richwood Township withdrawal. Round the amount of the distribution to each fund or participant to the nearest dollar. c Record the June 15 increase in each of the participant's funds. On June 15, Richwood Township decided to withdraw $3,110,000 for a capital projects payment. At the date of the withdrawal, the fair value of the Treasury notes had increased by $40,000. Assume that the trust fund was able to redeem the CDs necessary to complete the withdrawal without a penalty but did not receive interest on the funds. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Transaction Fund General Journal Debit Credit 1. Record the June 15 increase in each of the participant's funds. 1 City of Albertville General Fund Albertville Schools Richwood Township Record the increase in investments in the general journal. d. On June 15, Richwood Township decided to withdraw $3,110,000 for a capital projects payment. At the date of the withdrawal, the fair value of the Treasury notes had increased by $40,000. Assume that the trust fund was able to redeem the CDs necessary to complete the withdrawal without a penalty but did not receive interest on the funds. On September 15, interest on Treasury notes in the amount of $70,000 was collected. Interest on CDs accrued at year-end amounted to $48,000. At the end of the year undistributed earnings were allocated to the investment pool participants. Assume that there were no additional changes in the fair value of investments after the Richwood Township withdrawal. Round the amount of the distribution to each fund or participant to the nearest dollar. Record the change in each participant's Equity in Pooled Investment account due to the September 15 treasury interest and December 31 CD interest accrual. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) Transaction General Journal Credit un 1. Record the change in each participant's Equity in Pooled Investment account due to the September 15 treasury interest and December 31 CD interest accrual City of Albertville General Fund Albertville Schools Richwood Township
