Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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: On June 15, Richwood Township decided to withdraw $3,030,000 for a capital projects payment. At the date of the withdrawal, the fair value of the Treasury notes had increased by $32,000. Assume that the trust fund was able to redeem the CDs necessary to complete the withdrawal without a penalty but did not recelve interest on the funds. On September 15, interest on Treasury notes in the amount of $54,000 was collected. Interest on CDs accrued at year-end amounted to $32,000. At the end of the year, undistributed eamings 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" n the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) \begin{tabular}{|c|c|c|c|c|c|} \hline Transaction & Fund & \multicolumn{2}{|l|}{ General Journal } & Dobit & Crodit \\ \hline \multicolumn{6}{|c|}{ 1. Record the change in each participant's Equity in Pooled Investment account due to the September 15 treasury thtterest and December 31CD interest accrual. } \\ \hline 1 & \begin{tabular}{l} City of Albertvilo General \\ Fund \end{tabular} & Equity in Pooled Investments & & 3,200 & \\ \hline & & Revenues - Investment Earnings & 0 & & 3,200 \\ \hline & & & = & & \\ \hline & Albertvillo Schools & Equity in Pooled Imvestments & 0 & 15,180 & \\ \hline & & Revenues-lnvestmont Earnings & 0 & & 15,180 \\ \hline & & & & & \\ \hline & Richwood Township & Equity in Pooled Investments: & 0 & 13,620 & \\ \hline & & Revenues - Investment Earnings: & 0 & & 13,620 \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

Why do individuals first suspect a general medical condition?

Answered: 1 week ago

Question

What is the environment we are trying to create?

Answered: 1 week ago

Question

How can we visually describe our goals?

Answered: 1 week ago