PL

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