Question
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 Credit Cash
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 Credit 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. Open a general journal for the City of Monroe Police Department Pension Trust Fund and record the following transactions 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).
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