The City of Richmond maintains a Public Employee Retirement Trust Fund for its public safety employees.During the year ended June 30,2014,the following transactions occurred:
1.The City contributed $ 1,800,000 in cash to the plan.Employee members contributed an additional $ 600,000.
2.Annuity benefits in the amount of $175,000 were recorded as liabilities.
3.Annuity benefits,previously recorded as liabilities,were paid in cash in the amount of $167,000.
4.Investment income received in cash amounted to $105,000.In addition,$25,000 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 $18,500.
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.

Question

The City of Richmond maintains a Public Employee Retirement Trust Fund for its public safety employees.During the year ended June 30,2014,the following transactions occurred:
1.The City contributed $ 1,800,000 in cash to the plan.Employee members contributed an additional $ 600,000.
2.Annuity benefits in the amount of $175,000 were recorded as liabilities.
3.Annuity benefits,previously recorded as liabilities,were paid in cash in the amount of $167,000.
4.Investment income received in cash amounted to $105,000.In addition,$25,000 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 $18,500.
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.

Quizplus · Accepted Answer

The Answer of The City of Richmond maintains a Public Employee Retirement Trust Fund for its public safety employees.During the year ended June 30,2014,the following transactions occurred:
1.The City contributed $ 1,800,000 in cash to the plan.Employee members contributed an additional $ 600,000.
2.Annuity benefits in the amount of $175,000 were recorded as liabilities.
3.Annuity benefits,previously recorded as liabilities,were paid in cash in the amount of $167,000.
4.Investment income received in cash amounted to $105,000.In addition,$25,000 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 $18,500.
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.

The City of Richmond Maintains a Public Employee Retirement Trust