The City of Shipley maintains an Employee Retirement Fund; a single-employer, defined benefit plan that provides annuity
Question:
The City of Shipley maintains an Employee Retirement Fund; a single-employer, defined benefit plan that provides annuity and disability benefits. The fund is financed by a process that makes actuarially determined contributions from the city’s General Fund and by contributions that are made by the employees. The General Fund is handling the administration of the retirement fund and it does not have any administrative expenses. The Statement of Net Assets for the Employees’ Retirement Fund as of July 1, 2011 is shown below:
City of Shipley
Employees Retirement Fund
Statement of Net Assets
As of July 1, 2011
Assets
Cash $ 60,000
Accrued Interest Receivable 160,000
Investments, at fair value
Bonds 5,500,000
Common Stock 1,600,000
Total Assets $ 7,320,000
Liabilities
Accounts Payable and Accrued Expenses 430,000
Net Assets Held in Trust for Pension Benefits $ 6,890,000
Expert Answer:
Date 1 2 3 4 5 6 Journal Entries Account title and explaination Interest Receivable Cash Interest Re... View the full answer
Essentials of Accounting for Governmental and Not-for-Profit Organizations
ISBN: 978-0073527055
10th Edition
Authors: Paul A. Copley
