This problem comes from Accounting for Governmental & Nonprofit Entities (17th edition). I have an idea about several of these entries, however there are a couple that are a little confusing to me. If someone could help me understand how to make these entries I would appreciate the help. The one problem that I am having trouble with is b-1 as to how the entry is to be made and for the final the last two questions.

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 2013. At the date of the creation of the pool, February 15, 2016, 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	$ 890,000	$900,000
Albertville Schools	$4,200,000	$4,230,000
Richwood Township	$3,890,000	$3,870,000
Total	$8,980,000	$9,000,000

Using this information:

a. 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).

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

(c) 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.

(d-) 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.

Answer rating: 100% (QA)

a 1 US Treasury notes 900000 Certificates of deposit CDs difference 8100000 Due to Citys General Fun... View the full answer