Question: The following is the December 31 20X8 trial balance of

The following is the December 31, 20X8, trial balance of the McCarthy County Public Employees Retirement Fund, a multiple-employer pension plan in which the cities of Mooresville and Sutherland’s Gap participate, as well as the county.


The employees’ contributions are returned to them or to their estates upon resignation or death, respectively; vesting of employers’ matching contributions occurs only at retirement.
During 20X9 the following transactions occurred:
1. Employee contributions (which are matched by the employer) for the year were:
Employees of Contributions
McCarthy County ..... $60,000
Mooresville ......... 35,000
Sutherland’s Gap ...... 25,000
2. All amounts due to the pension plan were collected except $20,000 each still due from the cities.
3. Interest accrued in the amount of $169,000.
4. Interest receivable of $168,400 was collected.
5. Five employees resigned; their contributions were determined to have been $24,000.
Two employees died prior to retirement; their contributions were determined to have been $36,000.
6. Checks mailed to resigned employees during the year amounted to $34,500. Checks mailed to the estates of deceased employees totaled $33,000.
7. Annuities were accrued in the amount of $63,000; annuities in the amount of $62,700 were paid.
8. Additional investments were made as follows:
Bonds (at par) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 160,000
Accrued interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30,000
Discounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,000)
  $ 182,000
9. The fair value of investments at year end exceeded the carrying value by $3,000.Required Prepare journal entries, including closing entries, to record the transactions in the general ledger of the Police Retirement Fund.

Required
a. Prepare a worksheet (or journal entries and T-accounts) showing transactions, adjustments, and closing entries for the Retirement Fund for 20X9.
b. Prepare a Statement of Plan Net Position as of December 31, 20X9, and a Statement of Changes in Plan Net Position for the year ended December 31,20X9.


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  • CreatedOctober 25, 2014
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