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 2016. At the date of the creation of the pool, February 15, 2017, the fair value of the investments of each pool participant was as follows:

Investments

12/31/16

2/15/17

City of Albertville General Fund

$

898,500

$

942,500

Albertville Schools

4,217,000

4,429,750

Richwood Township

4,060,000

4,052,750

Total

$

9,175,500

$

9,425,000

What you can use:

• No Journal Entry Required
• Accrued Interest Receivable
• AdditionsDeposits in Pooled InvestmentsAlbertville Schools
• AdditionsDeposits in Pooled InvestmentsRichwood Township
• AdditionsInvestment EarningsAlbertville Schools
• AdditionsInvestment EarningsRichwood Township
• Cash
• Certificates of Deposit
• DeductionsWithdrawal from Pooled InvestmentsRichwood Township
• Due to General Fund
• Equity in Pooled Investments
• Investments
• RevenuesChange in Fair Value of Investments
• RevenuesInvestment Earnings
• U.S. Treasury Notes
• Undistributed Earnings on Pooled Investments

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. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

1. The Albertville City Council decided to pool the invesments of its General Fund with Albertville Schools and Richwood Township in an investment pool to be managed by the city.

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.)

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 school and the township were in certificates of deposit (CDs).

Investment Pool Trust FUnd:

2. On JUne 15, the Richwood Township decided to withdraw $3,095,000 for a capital projects payment. At the date of the withdrawal, the fair value of the Treasury notes has increased by $38,500.

2A. Record the increase in the fair value of the Treasury notes

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 $67,000 was collected.

4. Interest on CDs accrued at year-end amounted to $45,000.

5. At the end of the year, undistributed earnings were allocated to the investment pool participants. Assume that there were no additional chanages 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.

c.

Record the June 15 increase in each of the participants funds. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

1. Record the June 15 increase in each of the participant's funds.

City of Albertville General Fund:

Albertville Schools: Richwood Township- Record the increase in investments in the general journal:

Record the withdrawl made by Richwood Townships from the pooled investments.:

d.

Record the change in each participants 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" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

1. 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.

City of Albertville General Fund:

Albertville Schools:

Richwood Township:

e.

How will the investment trust fund report the General Funds interest in the investment pool and the Albertville Schools interest in the investment pool?

	Report the school but not the General fund.
	Report the General fund but not the school.
	Report both the school and the General fund.