Posted: April 10th, 2016

Record the transaction on the books of the employees retirement fund?

The City of Sweetwater maintains an Employees retirement Fund a single employer defined benefit plan that provides annuity and disability benefits.
The fund financed by actuarially determined contributions from the city s General Fund and by contributions from employees. Administration of the retirement fund is handled by general fund employees and the retirement fund does bear administrative expenses. Retirement Fund as of July 1,2011 is shown here:
Assets:
Cash 50,000
Accrued interest receivable 135,000
Investments as fair value:
Bonds 4,500,000
Common Stocks 1,300,000
Total Assets 5,985,000
Liabilities:
Accounts Payable and accrued Expenses 350,000
Net Assets held Trust for Pension for Benefits 5,635,000
During the year ended June 30,2012 the following transactions occurred:

1. The interest receivable on investment was collected in cash
2. Member contributions in the amount of $400,00 were received in cash
The city s General fund also contributed $600,00 in cash
3. Annuity benefits of $700,000 and disability of $150,000 were recorded as liabilities
4. Accounts payable and accrued expenses in the amount of $ $90,000 were paid cash
5. Interest income of $240,000 and dividends in the amount of $40,000 were received in cash In addition bond interest income of $140,0000 was
accrued at year end
6. Refunds of $ 130,000 were made in cash to terminated nonvested participants
7.Common stocks carried at a fair value of stocks of $500,000 were sold for $480,000. That $480,000 plus an additional $300,000 was invested in stocks
8. At year end it was determined that fair value of stocks held by the pension plan had decreased by $50,000 the fair value of bonds had increased by $30,000
9. Nominal accounts for the year were closed
A. Record the transaction on the books of the employees retirement fund
B. Prepare a statement of Changes in net assets for the employees retirement fund for the year ended June 30,2012
C. Prepare a statement of net assets for the employees retirement fund as of June 30,2012