Madison City pools investments of its General Fund with Madison Schools and Sherman Township in an investment pool managed by the city. Fair value of the investments of each pool participant was a follows:

Investments

                                                                        Prior FV          Current FV

Madison City General Fund                        490,000            500,000

Madison Schools                                       1,200,000         1,230,000

Sherman Township                                   1,890,000          1,870,000

Totals                                                            3,580,000         3,600,000

1) Record at current FV the investments transferred to the new pooled investment account.

2) Assume that the investments of the city’s general fund were in US treasury notes and the investments of the schools and township were in the certificate of deposit.

3) Certificate of deposit recorded at FV of 800,000 matured- the pool received 850,000 in cash (800,000 for the face of the certificate of deposit and 50,000 in interest). The entire amount was reinvested in a new certificate of deposit.

4) Interest on a certificate of deposit accrued at year-end amounted to 30,000

5) Compute the pool’s liability or net assets held for each of the participants for its proportionate share of earnings on the pooled investments.