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 city's 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, 2019, is shown here: $ 145,000 40,000 CITY OF SWEETWATER Employees' Retirement Fund Statement of Fiduciary Net Position As of July 1, 2019 Assets Cash Accrued Interest Receivable Investments, at Fair Value: Bonds Common Stocks Total Assets Liabilities Accounts Payable and Accrued Expenses Fiduciary Net Position Restricted for Pensions 4,500,000 1,300,000 5,985,000 400,000 $5,585,000 During the year ended June 30, 2020, the following transactions occurred: 1. The interest receivable on investments was collected in cash. 2. Member contributions in the amount of $260,000 were received in cash. The city's General Fund also contributed $830,000 in cash. 3. Annuity benefits of $740,000 and disability benefits of $172,000 were recorded as liabilities. 4. Accounts payable and accrued expenses in the amount of $990,000 were paid in cash. 5. Interest income of $235,000 and dividends in the amount of $40,000 were received in cash. In addition, bond interest income of $45,000 was accrued at year-end. 6. Refunds of $68,000 were made in cash to terminated, nonvested participants. 7. Common stocks, carried at a fair value of $500,000, were sold for $475,000. That $475,000, plus an additional $305,000, 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 $42,000; the fair value of bonds had increased by $33,000. 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, 2020. c. Prepare a Statement of Fiduciary Net Position for the Employees' Retirement Fund as of June 30, 2020. Required A Required B Required C Record the transactions on the books of the Employees' Retirement Fund. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) No Transaction General Journal Debit Credit 1 01 Cash 40,000 Accrued Interest Receivable 40,000 2 02 Cash 1,090,000 Additions-Member Contributions Additions-Employer Contributions 260,000 830,000 3 03 740,000 Deductions-Annuity Benefits Deductions-Disability Benefits Accounts Payable ololol 172,000 912,000 4 04 990,000 Accounts Payable Cash 990,000 5 5a 275,000 Cash Additions-Dividend Income Additions-Interest Income X 40,000 X 235,000 X 6 5b 45,000 Accrued Interest Receivable AdditionsInterest Income 45,000 7 06 DeductionsRefunds to Term Employees 68,000 Cash 68,000 8 7a Cash 475,000 25,000 Additions-Net Decrease in Fair Value Investments in Common Stock 500,000 9 7b Investments in Common Stock 780,000 > Cash 780,000 10 08 Investments in Common Stock x 9,000 Cash x 9,000 X 11 09 260,000 00 830,000 45,000 X O 40,000 Additions-Member Contributions Additions-Employer Contributions Additions Interest Income ditions-Dividend Additions-Net Decrease in Fair Value DeductionsAnnuity Benefits DeductionsDisability Benefits DeductionsRefunds to Term Employees Net Position: Restricted for OPEB Benefits OOOOOOOOO 25,000 x 740,000 172,000 68,000 170,000 X CITY OF SWEETWATER Employees' Retirement Fund Statement of Changes in Fiduciary Net Position For the Year Ended June 30, 2020 Additions Contributions: Total Contributions 0 Investment Earnings: Total Additions 0 Deductions Total Deductions 0 Change In Fiduciary Net Position 0 $ 0 Prepare a Statement of Fiduciary Net Position for the Employees' Retirement Fund as of June 30, 2020. CITY OF SWEETWATER Employees' Retirement Fund Statement of Fiduciary Net Position As of June 30, 2020 Assets Total Assets 0 Liabilities Total Liabilities $ O Fiduciary Net Position Total Net Position $ 0 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 city's 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, 2019, is shown here: $ 145,000 40,000 CITY OF SWEETWATER Employees' Retirement Fund Statement of Fiduciary Net Position As of July 1, 2019 Assets Cash Accrued Interest Receivable Investments, at Fair Value: Bonds Common Stocks Total Assets Liabilities Accounts Payable and Accrued Expenses Fiduciary Net Position Restricted for Pensions 4,500,000 1,300,000 5,985,000 400,000 $5,585,000 During the year ended June 30, 2020, the following transactions occurred: 1. The interest receivable on investments was collected in cash. 2. Member contributions in the amount of $260,000 were received in cash. The city's General Fund also contributed $830,000 in cash. 3. Annuity benefits of $740,000 and disability benefits of $172,000 were recorded as liabilities. 4. Accounts payable and accrued expenses in the amount of $990,000 were paid in cash. 5. Interest income of $235,000 and dividends in the amount of $40,000 were received in cash. In addition, bond interest income of $45,000 was accrued at year-end. 6. Refunds of $68,000 were made in cash to terminated, nonvested participants. 7. Common stocks, carried at a fair value of $500,000, were sold for $475,000. That $475,000, plus an additional $305,000, 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 $42,000; the fair value of bonds had increased by $33,000. 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, 2020. c. Prepare a Statement of Fiduciary Net Position for the Employees' Retirement Fund as of June 30, 2020. Required A Required B Required C Record the transactions on the books of the Employees' Retirement Fund. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) No Transaction General Journal Debit Credit 1 01 Cash 40,000 Accrued Interest Receivable 40,000 2 02 Cash 1,090,000 Additions-Member Contributions Additions-Employer Contributions 260,000 830,000 3 03 740,000 Deductions-Annuity Benefits Deductions-Disability Benefits Accounts Payable ololol 172,000 912,000 4 04 990,000 Accounts Payable Cash 990,000 5 5a 275,000 Cash Additions-Dividend Income Additions-Interest Income X 40,000 X 235,000 X 6 5b 45,000 Accrued Interest Receivable AdditionsInterest Income 45,000 7 06 DeductionsRefunds to Term Employees 68,000 Cash 68,000 8 7a Cash 475,000 25,000 Additions-Net Decrease in Fair Value Investments in Common Stock 500,000 9 7b Investments in Common Stock 780,000 > Cash 780,000 10 08 Investments in Common Stock x 9,000 Cash x 9,000 X 11 09 260,000 00 830,000 45,000 X O 40,000 Additions-Member Contributions Additions-Employer Contributions Additions Interest Income ditions-Dividend Additions-Net Decrease in Fair Value DeductionsAnnuity Benefits DeductionsDisability Benefits DeductionsRefunds to Term Employees Net Position: Restricted for OPEB Benefits OOOOOOOOO 25,000 x 740,000 172,000 68,000 170,000 X CITY OF SWEETWATER Employees' Retirement Fund Statement of Changes in Fiduciary Net Position For the Year Ended June 30, 2020 Additions Contributions: Total Contributions 0 Investment Earnings: Total Additions 0 Deductions Total Deductions 0 Change In Fiduciary Net Position 0 $ 0 Prepare a Statement of Fiduciary Net Position for the Employees' Retirement Fund as of June 30, 2020. CITY OF SWEETWATER Employees' Retirement Fund Statement of Fiduciary Net Position As of June 30, 2020 Assets Total Assets 0 Liabilities Total Liabilities $ O Fiduciary Net Position Total Net Position $ 0