b) Prepare a statement of changes in fiduciary net position for the fund for 2022. Enter contribution, investment income, and deduction accounts in order of magnitude (largest to smallest). Additions Contributions: City of Green Meadows Pension Trust Fund Employees Retirement Fund Statement of Changes in Fiduciary Net Position For the Year Ending December 31, 2022 Employer contributions ✓ $ 491,250 ✔ Plan member contributions ✔ 258,750 ✔ Total contributions $ 750,000✔ Investment income: Interest income Net increase in fair value of investments Dividend income Net investment income Total additions Deductions: Benefit payments Administrative costs Total deductions Net increase in fiduciary net position Net position restricted for pensions: Beginning of year End of year 3,950,000 x 1,000,000 ✔ Ov 850,000✔ ✔ 0 x 3,725,000 x 3,500,000✔ 175,000✔ 3,675,000✔ 0 x $ 50,825,500 ✔ 0 x c) Prepare a statement of fiduciary position as of December 31, 2022 Enter accounts in the order listed in Retirement Fund's trial balance. City of Green Meadows Pension Trust Fund Employees Retirement Fund Statement of Fiduciary Net Position December 31, 2022 Assets: Cash Investment income receivable Investments in corporate stocks Investments in US Government securities Total assets Liabilities: Accrued expenses Net position restricted for pensions Check Partially correct Marks for this submission: 3.32/4.00. 52,500 x 510,000 ✔ ✔ 32,075,000 x ŵ 51,425,500 x $84,100,500 x 25,000✔ $84,075,500 x Question 1 Partially correct Mark 3.32 out of 4.00 Flag question Journal entries and statements for a Pension Trust Fund The city of Green Meadows has had an employee pension fund for several years. The following is a trial balance for the fund at December 31, 2021: CITY OF GREEN MEADOWS Pension Trust Fund Employees' Retirement Fund Trial Balance December 31, 2021 Cash Investment income receivable Investments-corporate stocks Debits Credits $52,500 210,000 20,000,000 Investments-U.S.government securities 30,575,000 Accrued expenses $12,000 Net position restricted for pension benefits 50,825,500 $50,837,500 $50,837,500 The following transactions and events occurred in 2022: 1. Contributions from the General Fund totaled $750,000; included in this amount was $258,750 from the employees and $491,250 from the city. 2. Corporate stocks costing $500,000 were purchased. 3. The fund collected interest accrued as of December 31, 2021. Investment income for 2022 totaled $4,800,000, of which $4,290,000 was collected in cash. Investment income earned in 2022 included dividends of $850,000, and the remainder was interest. 4. Employee retirement benefits of $3,500,000 were paid. 5. Additional U.S.government securities totaling $1,100,000 were acquired. 6. Costs of operating the plan were $175,000; of this amount $150,000 was paid in cash, and the remainder was accrued. The accrued expenses at the beginning of the year were also paid. These expenses were administrative in nature. 7. U.S.government securities that had a book value of $500,000 were redeemed for $600,000. 8. The market value of the corporate stocks at the end of the year increased by $1,000,000.

b) Prepare a statement of changes in fiduciary net position for the fund for 2022. Enter contribution, investment income, and deduction accounts in order of magnitude (largest to smallest). Additions Contributions: City of Green Meadows Pension Trust Fund Employees Retirement Fund Statement of Changes in Fiduciary Net Position For the Year Ending December 31, 2022 Employer contributions ✓ $ 491,250 ✔ Plan member contributions ✔ 258,750 ✔ Total contributions $ 750,000✔ Investment income: Interest income Net increase in fair value of investments Dividend income Net investment income Total additions Deductions: Benefit payments Administrative costs Total deductions Net increase in fiduciary net position Net position restricted for pensions: Beginning of year End of year 3,950,000 x 1,000,000 ✔ Ov 850,000✔ ✔ 0 x 3,725,000 x 3,500,000✔ 175,000✔ 3,675,000✔ 0 x $ 50,825,500 ✔ 0 x c) Prepare a statement of fiduciary position as of December 31, 2022 Enter accounts in the order listed in Retirement Fund's trial balance. City of Green Meadows Pension Trust Fund Employees Retirement Fund Statement of Fiduciary Net Position December 31, 2022 Assets: Cash Investment income receivable Investments in corporate stocks Investments in US Government securities Total assets Liabilities: Accrued expenses Net position restricted for pensions Check Partially correct Marks for this submission: 3.32/4.00. 52,500 x 510,000 ✔ ✔ 32,075,000 x ŵ 51,425,500 x $84,100,500 x 25,000✔ $84,075,500 x Question 1 Partially correct Mark 3.32 out of 4.00 Flag question Journal entries and statements for a Pension Trust Fund The city of Green Meadows has had an employee pension fund for several years. The following is a trial balance for the fund at December 31, 2021: CITY OF GREEN MEADOWS Pension Trust Fund Employees' Retirement Fund Trial Balance December 31, 2021 Cash Investment income receivable Investments-corporate stocks Debits Credits $52,500 210,000 20,000,000 Investments-U.S.government securities 30,575,000 Accrued expenses $12,000 Net position restricted for pension benefits 50,825,500 $50,837,500 $50,837,500 The following transactions and events occurred in 2022: 1. Contributions from the General Fund totaled $750,000; included in this amount was $258,750 from the employees and $491,250 from the city. 2. Corporate stocks costing $500,000 were purchased. 3. The fund collected interest accrued as of December 31, 2021. Investment income for 2022 totaled $4,800,000, of which $4,290,000 was collected in cash. Investment income earned in 2022 included dividends of $850,000, and the remainder was interest. 4. Employee retirement benefits of $3,500,000 were paid. 5. Additional U.S.government securities totaling $1,100,000 were acquired. 6. Costs of operating the plan were $175,000; of this amount $150,000 was paid in cash, and the remainder was accrued. The accrued expenses at the beginning of the year were also paid. These expenses were administrative in nature. 7. U.S.government securities that had a book value of $500,000 were redeemed for $600,000. 8. The market value of the corporate stocks at the end of the year increased by $1,000,000.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 6E

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