In December 2019, the HAmilton County Board of Commissioners establised the Hamilton County OPEB Trust Fynd. Retired employees of Hamilton County can Oarticipate in postemployment beneifits through the Trust. The Trust is a single - empoyer derfined beneifit plan. The benefits provided are health insurance and life insurance. In December 2019, the County made a one-time contribution to the fund of $15,000,000. No other events took place in 2019. Fiscal year Transcactions where as followed: 1.The County paid its actuarially determined annual contribution of $8,750,000. 2. Member (employee) contributions totalled $4,500,000. Of this $4,350,000 was collected by December 31 and the remainder will be collected in January 2021. 3. Cash Totaling $20,000,000 was invested in U.S. Government securities. 4. Interest totaling $1,407,000 was earned on these securities. Of this amount $1,346,000 was collected during the year. 5. Because the County offers a drug plan to retired employees, the federal government Medicare program provides a subsidyto the County. The County received $712,000 from this subsidy. 6. Benifit claims from employees totaled $11,722,000 for the year.By the end, $9,460,000 had been paid to employees. 7. Administrative expenses totaled $147,000 (all paid in the current year.) Required: a. Prepare Journal Entries to record the information described in items 1-7. b. Prepare closing jurnal entries. c. Prepare a Statement of Changes in fiduciary Net Position for the year ending 2020. d. Prepare a Statement of Fiduciary Net Position as of December 31, 2020
In December 2019, the HAmilton County Board of Commissioners establised the Hamilton County OPEB Trust Fynd. Retired employees of Hamilton County can Oarticipate in postemployment beneifits through the Trust. The Trust is a single - empoyer derfined beneifit plan. The benefits provided are health insurance and life insurance.
In December 2019, the County made a one-time contribution to the fund of $15,000,000. No other events took place in 2019.
Fiscal year Transcactions where as followed:
1.The County paid its actuarially determined annual contribution of $8,750,000.
2. Member (employee) contributions totalled $4,500,000. Of this $4,350,000 was collected by December 31 and the remainder will be collected in January 2021.
3. Cash Totaling $20,000,000 was invested in U.S. Government securities.
4. Interest totaling $1,407,000 was earned on these securities. Of this amount $1,346,000 was collected during the year.
5. Because the County offers a drug plan to retired employees, the federal government Medicare program provides a subsidyto the County. The County received $712,000 from this subsidy.
6. Benifit claims from employees totaled $11,722,000 for the year.By the end, $9,460,000 had been paid to employees.
7. Administrative expenses totaled $147,000 (all paid in the current year.)
Required:
a. Prepare
b. Prepare closing jurnal entries.
c. Prepare a Statement of Changes in fiduciary Net Position for the year ending 2020.
d. Prepare a Statement of Fiduciary Net Position as of December 31, 2020
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