The following is a trial balance of the Police Retirement Fund of the City of Cherrydale at January 1, 20X7:

The following transactions took place during the year:
1. Contributions became due from the General Fund, $38,000, and a Special Revenue Fund, $6,000. One-half of these amounts is the employees’ share of contributions.
2. Payments were received from the General Fund, $30,000, and the Special Revenue Fund, $4,000.
3. Securities were acquired for cash as follows:
a. First Purchase:
Par value. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20,000
Premiums. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .300
Interest accrued at purchase . . . . . . . . . . . . . . . . . . .200
b. Second Purchase:
Par value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000
Discounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
4. Interest received on investments amounted to $3,000, including interest receivable on January 1, 20X7, and the accrued interest purchased.
5. An employee resigned prior to retirement and was paid $300, which is the amount of her contributions and interest thereon. Employer contributions do not vest until retirement.
6. Retirement payments of $600 were made (which included beginning of year pensions payable); pensions payable of $200 remained at year end.
7. An actuary indicated that the actuarial deficiency at year end was $19,000.
8. The fair value of the pension plan investments was $200 more than the carrying value at year-end.

Required
Prepare journal entries, including closing entries, to record the transactions in the general ledger of the Police RetirementFund.

Transcribed Image Text:

Cash. Interest Receivable Investments Pensions Payable.... Net Position-Restricted for Pension Benefits. 6,000 450 52,000 S 150 58,300 $58,450 $58,45 0