Question Description
The City of Sweetwater maintains anEmployees’ Retirement Fund, a single- employer defined benefit plan that providesannuity and disability benefits. The fund is financed by actuarially determinedcontributions from the city’s General Fund and by contributions from employees.Administration of the retirement fund is handled by General Fund employees, andthe retirement fund does not bear any administrative expenses. The Statement ofFiduciary" "Net Position for the Employees’ Retirement Fund as ofJuly 1, 2014, is shown here:
CITY OF SWEETWATER
Employees’ Retirement Fund
Statement of Fiduciary Net Position
As of July 1, 2014
Assets
Cash$120,000
Accrued InterestReceivable65,000
Investments, at Fair Value:
Bonds 4,500,000
Common Stocks 1,300,000
TotalAssets 5,985,000
Liabilities
Accounts Payable and AccruedExpenses 350,000
Fiduciary Net Position Restricted forPensions $5,635,000
"During the year ended June 30,2015, the following transactions occurred:
1. The interest receivable on investmentswas collected in cash.
2. Member contributions in the amount of$250,000 were received in cash. The city’s General Fund also contributed$750,000 in cash.
3. Annuity benefits of $700,000 anddisability benefits of $150,000 were recorded as liabilities.
4. Accounts payable and accrued expensesin the amount of $900,000 were paid in cash.
5. Interest income of $240,000 anddividends in the amount of $40,000 were received in cash. In addition, bondinterest income of $60,000 was ac- crued at year-end.
6. Refunds of $133,000 were made in cashto terminated, nonvested participants.
7. Common stocks, carried at a fair valueof $500,000, were sold for $480,000. That $480,000, plus an additional$300,000, was invested in stocks.
8. At year-end, it was determined thatthe fair value of stocks held by the pension plan had decreased by $40,000; thefair value of bonds had in- creased by $35,000.
9. Nominal accounts for the year wereclosed.
Requirement:
a. Record the transactions on the booksof the Employees’ Retirement Fund.
b. Prepare a Statement of Changes inFiduciary Net Position for the Employees’ Retirement Fund for the Year EndedJune 30, 2015
c. Prepare a Statement of Fiduciary Net Position for theEmployees’ Retirement Fund as of June 30,2015
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Place Order” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.