The City of Sweetwater maintains an Employees Retirement Fund, a single employer defined benefit plan that provides annuity and disability benefits. The fund is financed by actuarially determined contributions from the citys General Fund and by contributions from employees. Administration of the retirement fund is handled by General Fund employees, and the retirement fund does not bear any administrative expenses. The Statement of Fiduciary Net Position for the Employees Retirement Fund as of July 1, 2016, is shown here:

CITY OF SWEETWATER
Employees Retirement Fund
Statement of Fiduciary Net Position
As of July 1, 2016
Assets
Cash	$	138,000
Accrued Interest Receivable		58,200
Investments, at Fair Value:
Bonds		4,507,000
Common Stocks		1,308,000
Total Assets		6,011,200
Liabilities
Accounts Payable and Accrued Expenses		351,500
Fiduciary Net Position Restricted for Pensions	$	5,659,700

During the year ended June 30, 2017, the following transactions occurred:

1. The interest receivable on investments was collected in cash.
2. Member contributions in the amount of $276,300 were received in cash. The citys General Fund also contributed $809,000 in cash.
3. Annuity benefits of $736,000 and disability benefits of $165,000 were recorded as liabilities.
4. Accounts payable and accrued expenses in the amount of $957,000 were paid in cash.
5. Interest income of $244,000 and dividends in the amount of $32,300 were received in cash. In addition, bond interest income of $52,000 was accrued at year-end.
6. Refunds of $86,000 were made in cash to terminated, nonvested participants.
7. Common stocks, carried at a fair value of $508,000, were sold for $484,000. That $484,000, plus an additional $313,000, was invested in stocks.
8. At year-end, it was determined that the fair value of stocks held by the pension plan had decreased by $49,000; the fair value of bonds had increased by $41,000.
9. Nominal accounts for the year were closed.

Required: a. Record the transactions on the books of the Employees Retirement Fund. b. Prepare a Statement of Changes in Fiduciary Net Position for the Employees Retirement Fund for the year ended June 30, 2017. c. Prepare a Statement of Fiduciary Net Position for the Employees Retirement Fund as of June 30, 2017.

A.

B.

Credit No 1 Transaction 01 01 General Journal Cash Accrued Interest Receivable Debit 58,200 58,200 02 Cash 1,085,300 Additions-Investment Earnings-Net Decrease in Fair Value of 1,085,300 $ 901,000 Net Position: Restricted for Pension Benefits Accounts Payable and Accrued Expenses 901,000 X 04 957,000 Accounts Payable and Accrued Expenses Cash 957,000 5 05 328,300 X Cash Accrued Interest Receivable 52,000 X 86,000 Net Position: Restricted for Pension Benefits Cash 86,000 Cash 484,000 24,000 Additions-Investment Earnings-Net Decrease in Fair Value of Ins Investments in Common Stocks 508,000 8,000 AdditionsInvestment Earnings-Net Decrease in Fair Value of In Investments in Bonds Investments in Common Stocks 41,000 49,000 CITY OF SWEETWATER Employees' Retirement Fund Statement of Changes in Fiduciary Net Position For the Year Ended June 30, 2017 Additions: Contributions: Total Contributions Investment Income: Total Investment Income Total Additions