The City of Richmond maintains a Public Employee Retirement Trust Fund for its public safety employees. During the year ended June 30, 2017, the following transactions occurred: 1. The City contributed $ 1,200,000 in cash to the plan. Employee members contributed an additional $1,200,000. 2. Annuity benefits in the amount of $255,000 were recorded as liabilities. 3. Annuity benefits, previously recorded as liabilities, were paid in cash in the amount of $207,000. 4. Investment income received in cash amounted to $102,000. In addition, $16,000 in interest receivable was accrued at year-end. 5. Additional investments in the amount of $2,100,000 were purchased. 6. The market value of investments decreased by $9,100. 7. Nominal accounts for the year were closed.
The City of Richmond maintains a Public Employee Retirement Trust Fund for its public safety employees. During the year ended June 30, 2017, the following transactions occurred: 1. The City contributed $ 1,200,000 in cash to the plan. Employee members contributed an additional $1,200,000. 2. Annuity benefits in the amount of $255,000 were recorded as liabilities. 3. Annuity benefits, previously recorded as liabilities, were paid in cash in the amount of $207,000. 4. Investment income received in cash amounted to $102,000. In addition, $16,000 in interest receivable was accrued at year-end. 5. Additional investments in the amount of $2,100,000 were purchased. 6. The market value of investments decreased by $9,100. 7. Nominal accounts for the year were closed.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:The City of Richmond maintains a Public Employee Retirement Trust Fund for its public safety employees.
During the year ended June 30, 2017, the following transactions occurred:
1. The City contributed $ 1,200,000 in cash to the plan. Employee members contributed an additional
$1,200,000.
2. Annuity benefits in the amount of $255,000 were recorded as liabilities.
3. Annuity benefits, previously recorded as liabilities, were paid in cash in the amount of $207,000.
4. Investment income received in cash amounted to $102,000. In addition, $16,000 in interest receivable was
accrued at year-end.
5. Additional investments in the amount of $2,100,000 were purchased.
6. The market value of investments decreased by $9,100.
7. Nominal accounts for the year were closed.
Required:
Prepare journal entries for the above transactions on the books of the City of Richmond Public Safety Employee
Retirement Trust Fund.
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