Required Information [The following information applies to the questions displayed below.] The Albertville City Council decided to pool the investments of Its General Fund with Albertville Schools and Richwood Township in an investment pool to be managed by the city. Each of the pool participants had reported its Investments at fair value as of the end of 2022. At the date of the creation of the pool, February 15, 2023, the fair value of the investments of each pool participant was as follows: City of Albertville General Fund Albertville Schools Richwood Township Total Investments 12/31/22 $ 890,000 4,200,000 3,890,000 $8,980,000 2/15/23 $ 900,000 4,230,000 3,870,000 $9,000,000 in June 15, Richwood Township decided to withdraw $3,010,000 for a capital projects payment. At the date of the withdrawal, the ir value of the Treasury notes had increased by $30,000. Assume that the trust fund was able to redeem the CDs necessary to omplete the withdrawal without a penalty but did not receive Interest on the funds. On September 15, Interest on Treasury notes in e amount of $50,000 was collected. Interest on CDs accrued at year-end amounted to $28,000. At the end of the year, ndistributed earnings were allocated to the investment pool participants. Assume that there were no additional changes in the fair alue of Investments after the Richwood Township withdrawal. Round the amount of the distribution to each fund or participant to e nearest dollar. Record the change in each participant's Equity in Pooled Investment account due to the September 15 treasury terest and December 31 CD interest accrual. (If no entry is required for a transaction/event, select "No Journal Entry Required" the first account fleld. Do not round Intermediate calculations.)
Required Information [The following information applies to the questions displayed below.] The Albertville City Council decided to pool the investments of Its General Fund with Albertville Schools and Richwood Township in an investment pool to be managed by the city. Each of the pool participants had reported its Investments at fair value as of the end of 2022. At the date of the creation of the pool, February 15, 2023, the fair value of the investments of each pool participant was as follows: City of Albertville General Fund Albertville Schools Richwood Township Total Investments 12/31/22 $ 890,000 4,200,000 3,890,000 $8,980,000 2/15/23 $ 900,000 4,230,000 3,870,000 $9,000,000 in June 15, Richwood Township decided to withdraw $3,010,000 for a capital projects payment. At the date of the withdrawal, the ir value of the Treasury notes had increased by $30,000. Assume that the trust fund was able to redeem the CDs necessary to omplete the withdrawal without a penalty but did not receive Interest on the funds. On September 15, Interest on Treasury notes in e amount of $50,000 was collected. Interest on CDs accrued at year-end amounted to $28,000. At the end of the year, ndistributed earnings were allocated to the investment pool participants. Assume that there were no additional changes in the fair alue of Investments after the Richwood Township withdrawal. Round the amount of the distribution to each fund or participant to e nearest dollar. Record the change in each participant's Equity in Pooled Investment account due to the September 15 treasury terest and December 31 CD interest accrual. (If no entry is required for a transaction/event, select "No Journal Entry Required" the first account fleld. Do not round Intermediate calculations.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Required Information
[The following information applies to the questions displayed below.]
The Albertville City Council decided to pool the investments of its General Fund with Albertville Schools and Richwood
Township in an investment pool to be managed by the city. Each of the pool participants had reported Its Investments at
fair value as of the end of 2022. At the date of the creation of the pool, February 15, 2023, the fair value of the
Investments of each pool participant was as follows:
City of Albertville General Fund
Albertville Schools.
Richwood Township
Total
Fund
Investments
d. On June 15, Richwood Township decided to withdraw $3,010,000 for a capital projects payment. At the date of the withdrawal, the
fair value of the Treasury notes had increased by $30,000. Assume that the trust fund was able to redeem the CDs necessary to
complete the withdrawal without a penalty but did not receive Interest on the funds. On September 15, Interest on Treasury notes in
the amount of $50,000 was collected. Interest on CDs accrued at year-end amounted to $28,000. At the end of the year,
undistributed earnings were allocated to the investment pool participants. Assume that there were no additional changes in the fair
value of Investments after the Richwood Township withdrawal. Round the amount of the distribution to each fund or participant to
the nearest dollar. Record the change in each participant's Equity in Pooled Investment account due to the September 15 treasury
Interest and December 31 CD Interest accrual. (If no entry is required for a transaction/event, select "No Journal Entry Required"
In the first account field. Do not round Intermediate calculations.)
Albertville Schools
12/31/22
$ 890,000
4,200,000
3,890,000
$8,980,000
Transaction
General Journal
Debit
Credit
1. Record the change in each participant's Equity in Pooled Investment account due to the September 15 treasury interest and December 31 CD interest accrual.
1
City of Albertville General Fund
Richwood Township
2/15/23
$ 900,000
4,230,000
3,870,000
$9,000,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F397a03a4-5558-47da-952e-9091e568a307%2Fc23c5a9a-e859-4920-b449-b61c17584d03%2Fet16oxg_processed.png&w=3840&q=75)
Transcribed Image Text:Required Information
[The following information applies to the questions displayed below.]
The Albertville City Council decided to pool the investments of its General Fund with Albertville Schools and Richwood
Township in an investment pool to be managed by the city. Each of the pool participants had reported Its Investments at
fair value as of the end of 2022. At the date of the creation of the pool, February 15, 2023, the fair value of the
Investments of each pool participant was as follows:
City of Albertville General Fund
Albertville Schools.
Richwood Township
Total
Fund
Investments
d. On June 15, Richwood Township decided to withdraw $3,010,000 for a capital projects payment. At the date of the withdrawal, the
fair value of the Treasury notes had increased by $30,000. Assume that the trust fund was able to redeem the CDs necessary to
complete the withdrawal without a penalty but did not receive Interest on the funds. On September 15, Interest on Treasury notes in
the amount of $50,000 was collected. Interest on CDs accrued at year-end amounted to $28,000. At the end of the year,
undistributed earnings were allocated to the investment pool participants. Assume that there were no additional changes in the fair
value of Investments after the Richwood Township withdrawal. Round the amount of the distribution to each fund or participant to
the nearest dollar. Record the change in each participant's Equity in Pooled Investment account due to the September 15 treasury
Interest and December 31 CD Interest accrual. (If no entry is required for a transaction/event, select "No Journal Entry Required"
In the first account field. Do not round Intermediate calculations.)
Albertville Schools
12/31/22
$ 890,000
4,200,000
3,890,000
$8,980,000
Transaction
General Journal
Debit
Credit
1. Record the change in each participant's Equity in Pooled Investment account due to the September 15 treasury interest and December 31 CD interest accrual.
1
City of Albertville General Fund
Richwood Township
2/15/23
$ 900,000
4,230,000
3,870,000
$9,000,000
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