The City of East Brunswick maintains a Public Employee Retirement Trust Fund for its public safety employees. During the year ended June 30, 2009, the following transactions occurred:
1. Member contributions in the amount of $ \$ 1,800,000 $ were received in cash. The city contributed the same amount in cash.
2. Annuity benefits in the amount of $ \$ 450,000 $ were recorded as liabilities.
3. Annuity benefits, previously recorded as liabilities, were paid in cash in the amount of $ \$ 457,000 . $
4. Investment income received in cash amounted to $ \$ 105,000 $. In addition, $ \$ 52,000 $ in interest receivable was accrued at year-end.
5. Additional investments in the amount of $ \$ 700,000 $ were purchased.
6. The market value of investments decreased by $ \$ 12,000 $.
7. Nominal accounts for the year were closed. Required: Prepare journal entries for the above transactions on the books of the City of East Brunswick Public Safety Employee Retirement Trust Fund.

Question

The City of East Brunswick maintains a Public Employee Retirement Trust Fund for its public safety employees. During the year ended June 30, 2009, the following transactions occurred:
 1. Member contributions in the amount of $ \$ 1,800,000 $ were received in cash. The city contributed the same amount in cash.
2. Annuity benefits in the amount of $ \$ 450,000 $ were recorded as liabilities.
3. Annuity benefits, previously recorded as liabilities, were paid in cash in the amount of $ \$ 457,000 . $
4. Investment income received in cash amounted to $ \$ 105,000 $. In addition, $ \$ 52,000 $ in interest receivable was accrued at year-end.
5. Additional investments in the amount of $ \$ 700,000 $ were purchased.
6. The market value of investments decreased by $ \$ 12,000 $.
7. Nominal accounts for the year were closed. Required: Prepare journal entries for the above transactions on the books of the City of East Brunswick Public Safety Employee Retirement Trust Fund.

Quizplus · Accepted Answer

The Answer of The City of East Brunswick maintains a Public Employee Retirement Trust Fund for its public safety employees. During the year ended June 30, 2009, the following transactions occurred:
 1. Member contributions in the amount of $ \$ 1,800,000 $ were received in cash. The city contributed the same amount in cash.
2. Annuity benefits in the amount of $ \$ 450,000 $ were recorded as liabilities.
3. Annuity benefits, previously recorded as liabilities, were paid in cash in the amount of $ \$ 457,000 . $
4. Investment income received in cash amounted to $ \$ 105,000 $. In addition, $ \$ 52,000 $ in interest receivable was accrued at year-end.
5. Additional investments in the amount of $ \$ 700,000 $ were purchased.
6. The market value of investments decreased by $ \$ 12,000 $.
7. Nominal accounts for the year were closed. Required: Prepare journal entries for the above transactions on the books of the City of East Brunswick Public Safety Employee Retirement Trust Fund.

The City of East Brunswick Maintains a Public Employee Retirement $1,800,000 \$ 1,800,000 $1,800,000

The City of East Brunswick Maintains a Public Employee Retirement $\$ 1,800,000$