Essay About Additions-Contributions-Plan Members A And Additions-Investment Earnings-Interest A

Accounting Case Study – Computation of the Following Journal Entries
Essay Preview: Accounting Case Study – Computation of the Following Journal Entries
Report this essay
a. Record the transactions on the books of the Employees Retirement Fund.
Solution: Computation of the Following Journal Entries
Particulars
Debits
Credits
$160,000
To Accrued Interest Receivable A/c
$160,000
$1,160,000
To Additions-Contributions-Plan Members A/c
$460,000
To Additions-Contributions-Employer A/c
$700,000
$780,000
$200,000
To Accounts Payable and Accrued Expenses A/c
$980,000
$820,000
To Cash A/c
$820,000
$380,000
To Additions-Investment Earnings-Interest A/c
$320,000
To Additions-Investment Earnings-Dividends A/c
$60,000
$160,000
To Additions-Investment Earnings-Interest A/c
$160,000
$150,000
To Cash A/c
$150,000
$472,000
$28,000
To Investments in Common Stocks A/c
$500,000
Investments in Common Stocks A/c————-Dr
$832,000
To Cash A/c
$832,000
$35,000
$25,000
To Investments in Common Stock A/c
$60,000
$460,000
$700,000
$480,000
$60,000
To Additions-Investment Earnings-Net decrease in Fair Value of Investments A/c
$53,000
To Deductions-Annuity Benefits A/c
$780,000
To Deductions-Disability Benefits A/c
$200,000
To Deductions-Refunds to Terminated Employees A/c
$150,000
To Net Assets Held in Trust for Pension Benefits A/c
$517,000
b. Prepare a Statement of Changes in Net Assets for the Employees Retirement Fund for the Year Ended June 30, 2012.
Solution: Computation of the Employees Retirement Fund Statement Of Changes In Plan Net Assets
City of Shipley
Employees Retirement Fund
Statement Of Changes In Plan Net Assets
For The Year Ended June 30, 2012
Particulars
Debits
Credits
Additions:
Contributions:
Employer