Pension Trust Fund Journal Entries

The following is a trial balance of the Police Retirement Fund of the City of Cherryville at January 1, 20X7:

Cash	$6,000
Interest Receivable	450
Investments	52,000
Pensions Payable		150
Net PositionRestricted for Pension Benefits	_____	58,300
	$58,450	$58,450

The following transactions took place during the year:

1. Contributions became due from the General Fund, $38,000, and a Special Revenue Fund, $6,000. One-half of these amounts is the employees' share of contributions.

2. Payments were received from the General Fund, $30,000, and the Special Revenue Fund, $4,000.

3. Securities were acquired for cash as follows:

First Purchase:

Par value $20,000

Premiums 300

Interest accrued at purchase 200

Second Purchase:

Par value 15,000

Discounts 150

4. Interest received on investments amounted to $3,000, including interest receivable on January 1, 20X7, and the accrued interest purchased.

5. An employee resigned prior to retirement and was paid $300, which is the amount of her contributions and interest. Employer contributions do not vest until retirement.

6. Retirement payments of $600 were made (which included beginning of year pensions payable); pensions payable of $200 remained at year end.

7. An actuary indicated that the net pension liability at year end was $19,000.

8. The fair value of the pension plan investments was $200 more than the carrying value at year end.

Required: Develop journal entries, including closing entries, to record the transactions in the general ledger of the Police Retirement Fund.