Business, 12.03.2021 15:50 rleiphart1

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 2016. At the date of the creation of the pool, February 15, 2017, the fair value of the investments of each pool participant was as follows: Investments
12/31/16 2/15/17
City of Albertville General Fund $899,000 $945,000
Albertville Schools 4,218,000 4,441,500
Richwood Township 4,070,000 4,063,500
Total $9,187,000 $9,450,000
Required
a.
Prepare the journal entries that should be made by the City of Albertville, Albertville Schools, and Richwood Township on February 15 to record their participation in the investment pool

The albertville city council decided to pool the investments of its general fund with alberville schools and richwood township in an investment pool to be managed by the city

b. Prepare the journal entries to be made in the accounts of the investment pool trust fund to record the following transactions of the first year of operations:

(1) Record the investments transferred to the pool; assume that the investments of the city's General Fund were in U. S. Treasury notes and the investments of both the schools and the township were in certificates of deposit (CDs).

(2) On June 15, the 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 has increased by $30,000. Assume that the trust fund is able to redeem the CDs necessary to complete the withdrawal without a penalty but does not receive interest on the funds.

(3) On September 15, interest on Treasury notes in the amount of $50,000 was collected.

(4) Interest on CDs accrued at year-end amounted to $28,000.

(5) 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.

(c) Record the June 15 increase in each of the participant's funds.

(d) 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.

Explain how the investment trust fund would report the General Fund's interest in the investment pool and the Albertville School's interest in the investment pool.

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 21:00

Symantec corp., located in cupertino, california, is one of the world's largest producers of security and systems management software. the company's consolidated balance sheets for the 2009 and 2008 fiscal years included the following ($ in thousands): current assets: receivables, less allowances of $21,766 in 2009 and $24,089 in 2008 $ 838,010 $ 758,700 a disclosure note accompanying the financial statements reported the following ($ in thousands): year ended 2009 2008 (in thousands) trade accounts receivable, net: receivables $ 859,776 $ 782,789 less: allowance for doubtful accounts (8,938) (8,990) less: reserve for product returns (12,828) (15,099) trade accounts receivable, net: $ 838,010 $ 758,700 assume that the company reported bad debt expense in 2009 of $2,000 and had products returned for credit totaling $3,230 (sales price). net sales for 2009 were $6,174,800 (all numbers in thousands).required: what is the amount of accounts receivable due from customers at the end of 2009 and 2008? what amount of accounts receivable did symentec write off during 2009? what is the amount of symentec’s gross sales for the 2009 fiscal year? assuming that all sales are made on a credit basis, what is the amount of cash symentec collected from customers during the 2009 fiscal year?

Answers: 3

Answer

Business, 22.06.2019 00:30

How did lani lazzari show her investors she was a good investment? (site 1)

Answers: 3

Answer

Business, 22.06.2019 04:30

Galwaysc electronics makes two products. model a requires component a and component c. model b requires component b and component c. new versions of both models are released each year with updated versions of all components. all components are sourced overseas, and abc contracts annually for a quantity of each component before seeing that year’s demand. components are only assembled into finished products once demand for each model is known. for the coming year, alwaysc’s purchasing manner has proposed ordering 500,000 units of component a, 630,000 of component b, and 1,000,000 units of component c. her boss has asked why she has recommended purchasing so much of components a and b when alwaysc will not have enough of component c to fully use all of the inventory of a and b. what factors might the purchasing manager cite to explain her recommended order? explain your reasoning.

Answers: 3

Answer

Business, 22.06.2019 10:20

Asmartphone manufacturing company uses social media to achieve different business objectives. match each social media activity of the company to the objective it the company achieve.

Answers: 1

Answer

You know the right answer?

The Albertville City Council decided to pool the investments of its General Fund with Albertville Sc...

Questions