! Required information [The following information applies to the questions displayed below.) 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: City of Albertville General Fund Albertville Schools Richwood Township Total Investments 12/31/19 2/15/20 $ 890,000 $ 900,000 4,200,000 4,230,000 3,890,000 3,870,000 $8,980,000 $9,000,000 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.) 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.) 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 managed by the city. 1 City of Albertville General Fund Albertville Schools Richwood Township b. Prepare the journal entries to be made in the accounts of the investment pool trust fund to record the following transactions for the first year of operations: (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field. Do not round intermediate calculations.) Transaction runa General Journal Vepit Credit 1. 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 investments of both the schools and the township were in certificates of deposit (CDs). Investment Pool 1 Trust Fund 2. On June 15, Richwood Township decided to withdraw $3,010,000 for a capital projects payment. At the date of the withdrawal, the fair value of the Treasury notes had increased by $30,000. 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. Investment Pool 2a Record the increase in the fair value of the Treasury notes. Trust Fund 2b Record the withdrawal for the capital projects payment. 2c Record the payment of cash. 3. On September 15, interest on Treasury notes in the amount of $50,000 was collected. 3 Investment Pool Trust Fund 4. Interest on CDs accrued at year-end amounted to $28,000. Investment Pool 4 Trust Fund 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 fair value of investments after the Richwood Township withdrawal. Round the amount of the distribution to each fund or participant to the nearest dollar. Investment Pool 5 Trust Fund
