a. Record the transactions on the books of the Employees’ Retirement Fund.
City of Sweetwater Employees’ Retirement Fund
General Journal
For the Year Ended June 30, 2012 Debits Credits
Cash 135,000
Accrued Interest Receivable 135,000 Cash 1,000,000
Additions – Contributions – Plan Members 400,000
Additions – Contributions – Employer 600,000 Deductions – Annuity Benefits 700,000
Deductions – Disability Benefits 150,000
Accounts Payable and Accrued Expenses 850,000 Accounts Payable and Accrued Expenses 900,000
Cash 900,000 Cash 280,000
Accrued Interest Receivable 140,000
Additions – Investment Earnings – Interest 380,000
Additions – Investment Earnings – Dividend 40,000 Deductions – Refund to Terminated Employees 130,000
Cash 130,000 Cash 480,000
Additions – Inv Earnings – Net Decrease in FV of Inv 20,000
Common Stock 500,000 Common Stock 780,000
Cash 780,000 Bonds 30,000
Additions – Inv Earnings – Net Decrease in FV of Inv 20,000
Common Stock 50,000 Additions – Contributions – Plan Members 400,000
Additions – Contributions – Employer 600,000
Additions – Investment Earnings – Interest 380,000
Additions – Investment Earnings – Dividend 40,000
Deductions – Inv Earnings - Net Decrease in FV of Inv 40,000
Deductions – Annuity Benefits 700,000
Deductions – Disability Benefits 150,000
Deductions – Refunds to Terminated Employees 130,000
Net Assets Held in Trust for Pension Benefits 400,000
b. Prepare a Statement of Changes in Net Assets for the Employees’ Retirement Fund for the Year Ended June 30, 2012.
City of Sweetwater
Statement of Changes in Net Assets
Employees’ Retirement Fund
For the Year Ended June 30, 2012 Additions
Contributions:
Employer $ 600,000
Plan Members 400,000
Total Contributions 1,000,000
