The City of Sweetwater maintains an Employees' Retirement Fund, a single-employer defined benefit plan that provides annuity anddisability benefits. The fund is financed by actuarially determined contributions from the city's General Fund and by contributions fromemployees. Administration of the retirement fund is handled by General Fund employees, and the retirement fund does not bear anyadministrative expenses. The Statement of Fiduciary Net Position for the Employees Retirement Fund as of July 1, 2019, is shown here:CITY OF SWEETWATEREmployees' Retirement FundStatement of Fiduciary Net PositionAs of July 1, 2019AssetsCashAccrued Interest ReceivableInvestments, at Fair Value:BondsCommon StocksTotal AssetsLiabilitiesAccounts Payable and Accrued ExpensesFiduciary Net Position Restricted for Pensions$ 133,00055,5004,500,0001,301,0005.989,500160,00035.629.500During the year ended June 30, 2020, the following transactions occurred1. The interest receivable on investments was collected in cash2. Member contributions in the amount of $260.000 were received in cash. The city's General Fund also contributed $810.000 in During the year ended June 30, 2020, the following transactions occurred:1. The interest receivable on investments was collected in cash.2. Member contributions in the amount of $260,000 were received in cash. The city's General Fund also contributed $810,000 incash.3. Annuity benefits of $738,000 and disability benefits of $160,000 were recorded as liabilities.4. Accounts payable and accrued expenses in the amount of $953,000 were paid in cash.5. Interest income of $244,000 and dividends in the amount of $40,000 were received in cash. In addition, bond interest income of$45,000 was accrued at year-end.6. Refunds of $66,000 were made in cash to terminated, nonvested participants.7. Common stocks, carried at a fair value of $509,000, were sold for $485,000. That $485,000, plus an additional $309,000, wasinvested in stocks,8. At year-end, it was determined that the fair value of stocks held by the pension plan had decreased by $50,000; the fair value ofbonds had increased by $32,0009. Nominal accounts for the year were closedRequired:a. Record the transactions on the books of the Employees Retirement Fundb. Prepare a Statement of Changes in Fiduciary Net Position for the Employees' Retirement Fund for the year ended June 30, 2020.c. Prepare a Statement of Fiduciary Net Position for the Employees' Retirement Fund as of June 30, 2020.

Journal entries refers to the concept of noting all the day to day activities of a company and also…

Answered: Net Position 2019 ensions $ 133,000…

Net Position 2019 ensions $ 133,000 55,500 4,500,000 1,301.000 5.989,500 160,000 $5.629.500 lowing transactions occurred:

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 2RP

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